Although the hotel is undergoing a major renovation and facelift (January 2011), it is a reasonable hotel. The location is simply awesome, barely 300 meteres from the Eastern gate of the Taj, a location, no one can match. Even the Oberoi Amarvilas is down the road.
I stayed in the swiss cottage C-5 (it is basically a furnished tent). These are well furnished tents with heaters, air conditioners, hand dryer, geysers. But, it is advisable not to stay in those tents during winter, a mistake I committed. The nights are unbearable with the cold. There are about 8 normal AC rooms available at much cheaper rate which should be preferred.
The hotel comes with a CP plan although, there are a few varieties in the breakfast (alu-paratha/puri-bhaji/toast-omlette). Just opposite the entrance, there is a restaurant Ambika, which serves good Bengali food.
Room service is so-so, considering the fact that you are staying in a government accomodation.