in june we will be there 7 nights. should we do all 7 nights in cuzco, or should we stay 2-3 nights in olantaytambo (to experience a different part of the valley?

I would recommend staying in Ollantaytambo, Hotel Pakaritampu is the best hotel in town.
Note the restaurant selection and nightlife is limited in Ollantaytambo but the town itself is charming, basically the whole town is an Incan ruin.

In ollantaytambo I would recommend you stay at "El Alberque" ownd by the famous Wendy Weeks. It is a little more rustic but the staff is very helpful and friendly. The entrance is actually on the train platform making it very convenient to catch the train up to Machu Picchu or back to Cuzco. There is another hotel named "Alberque" which is right next to it, but you want the one that is through the gated entrance to the train. Check the sites: http://www.rumbosperu.com/elalbergue AND http://www.andeantravelweb.com/peru/...lalbergue.html

I would say a couple nights in Cusco, a night or two in the Sacred Valley at the Posada del Inca in Yucay (a wonderful place) and 2 nights at Machu Pichu at the Machu Picchu Pueblo Hotel--another great place. If you go to www.janeandken.com and navigate to Peru you will find pictures of both places plus a travelogue that should make you anticpate your trip even more than you now do. Enjoy!

thank you for your responses!