A little town on Lake Llanquihue, much like Pucon but more expensive. Quite pretty with good views but everything costs too much. We did the bus/boat ride to Bariloche, it cost US$130 each but was definitely worth it, it was a spectacular trip.

Accommodation - Hostal Casa Azul, it's new and wasn't really due to be open for another 3 weeks. Very nice, it's run by a German couple so lots of Germans turn up to stay. There's free Internet access and kitchen use and the furniture is all made out of local trees. The wooden floors mean you can here the other guests walking around at night, other than that it was fine.