We went in 2005. Macchu Picchu is, without a doubt, the absolutely coolest place I have ever been. You know how many times you see the pictures of a place in National Geographic and then go there and it doesn't look as good? That is not Macchu Picchu -- it is way better than the pictures!
If you can swing it, stay at the hotel right outside the gate, rather than down in Aguas Calientes. The reason -- the last bus down the mountain leaves at about 4pm. The first one up the next morning arrives about 10am. In between, you have the entire place to yourself. Only the people in the other 20-25 rooms in the hotel are there. Walking among the ruins when the sun comes up in the morning, when almost no one else is there, is truly incredible.
While I was out walking to the Inca Bridge (you'll learn what that is -- no place for the timid) the morning after our arrival, I came across a young American couple who had hiked up from Aguas Calientes at the crack of dawn. The young fellow asked if I would take their picture with the ruins in the background. While I was doing so, he whipped a ring out of his pocket and asked her to marry him. She said yes. It was a great day all around.
The hotel at the ruins is expensive and often full, but it is well worth the effort. We planned our entire trip around the one night when we could get a room there.
We took the Hiram Bingham train from Ollantaytambo to Macchu Picchu and back. Spend the money to travel in the fancy part of the train. The food is good, the service great and the view magnificent. An interesting thing is the "advance scout bus". It is a Volkwagen bus that has been fitted with railroad wheels. It runs ahead of the train to scout out rock falls and other problems on the way. I thought it was very cool.
In Cusco, we stayed at the Monasterio del Cusco, a 500 year old converted monastery/seminary. It was very nice, the rooms were good and the restaurant was great. Because it is at 11,000 feet elevation, you can have supplemental oxygen piped into your room. We tried it, but found that it made no difference. In general, we did not have much problem with altitude sickness. The first day in the mountains, in Pisac, I got pretty winded while hiking, but after that was not a problem -- although you will be moving slower than you would at home. Often, after climbing a set of stairs at 12,000 feet and pausing to catch a breath, I was amazed to see the local kids playing soccer.
In Lima, we stayed at the Country Club hotel in the heart of the city. Get a cab to take you down to the beaach at the foot of the cliffs. There is a restaurant that sits on a very long pier jutting out into the Pacific. I can't remember the name, but I'm sure the cabbies know it. It has the greatest ceviche. We also got a private tour of the city from a young woman who is an architect. Her father was a Peruvian diplomat, so she grew up in the US and other places. To supplement her income, she gave tours on weekends. We found it very interesting.
If you would like, PM me and I can give more details.
Gumby
P.S. - I would send a picture, but I cannot get one to upload.
Isnt everything commercialized these days?
