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Rio to Paraguay and Iguazu Falls advice needed

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In May, 2011, my 22 yr. old daughter will be visiting her good friend who is in the Peace Corps in Paraguay in the Cordillera section. We have snagged an ultra low miles FF ticket to Rio for dates that work for her. Now we need to figure out getting her to Asuncion and back to Rio for her outbound flight. She will be picked up by her friend in Asuncion. At some point during her approx. 2 week stay they plan to go to Iguazu Falls, probably traveling by bus, low budget, etc.

My question is whether her best plan would be to fly one way Rio-ASU and then plan the Falls trip at the end so she flies back to Rio from either Foz or maybe Cuidad del Este rather than trekking back to Asuncion to get a flight out??

My daughter is a dual American-Italian citizen so she can use her Italian passport to enter Brazil and Paraguay without the expensive visa, though her friend would need the Brazil visa if they go to the Brazil side.

Does anyone have experience visiting the Falls from Paraguay and then leaving Paraguay from that area? How long is the bus ride from an area near Asuncion out to the Falls? Sounds like there are more low budget places to stay on the Argentine side, but I'm having a hard time figuring out about the transportation from one country to the other to the other.

Thanks for any light you can shed on this for us.

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