I can not recommend this hotel enough. It has superb views of the rice paddies, yet is only just outside the main "drag" of Ubud; it actually is a good location a) because it is not boxed in and b) because you can walk up Hanoman Street going to the market / centre and then walk down Monkey Forest Road on the way back.
It is 100% guest and staff friendly; the staff are actually rewarded with a profit share scheme which puts Tegal Sari streets ahead of most Balinese hotels and how they treat their staff. Also, the hotel is so environmentally friendly the frogs and eels in the paddy streams around it are good enough to eat (local delacacy - not on the hotel menu unless you ask).
Really, really superb hotel and not expensive; quite likely the best value in Ubud.
Tegal Sari's Web Site