Help Sara Brick with their trip plan: Destination - Peru!
Hi Sara! While I haven't stayed in any of the ones in Cusco, I have heard fabulous things about Casa Andina, a Peruvian-owned chain of hotels that are all very classy and reasonably priced. There are several in the city. Just put "Casa Andina Cusco" into Gogobot's search bar. For a day trip from Cusco, try Sacsayhuaman (the running joke being that it's pronounced like "sexy woman"), another great archaeological site.
For traveling from Lima to Cusco - I recommend flying.
The bus takes about 16 hours and I got very queasy sitting in the back. Took another half a day to recover from the drive.