Going to Peru in Nov. for a week---Cusco, Sacred Valley,Machu Picchu and typical places you can fit in in a week. We are not using a tour company. How do you get between cities? We want to acclimate by leaving Cusco airport and going to a lower altitude city the first few days. Which city is most interesting?

We leave in 3 weeks and are doing the same as you.
We also did not want to use a tour.
We are renting a car. (even though many people recommend against that). But we have driven in Costa Rica, Ireland, France, New Zealand and Greece and feel comfortable with our decision.
Also I have a friend that went last year, used a driver and she said she wished they would have had their own car and that the roads are fine and it is fairly easy to navigate to the major sites. They do drive really fast and I know you have to be extra careful. It helps having four eyes on the road at all times, too

If you're not very confident on foreign roads driving yourself, then I know there are buses that go to most of the major towns. Otherwise, it seems the most common way most people go is to hire a driver. It sounds like that is very easy to do in Cusco.

As for the towns:
-Pisac has a great market on Tuesdays, Thursdays and a really big one on Sundays and some interesting ruins.
-Ollanytaytambo (where we are spending 3 nights) has a massive temple-fortress to explore and a lovely picturesque Old Town...so I've read

There are lots of other little towns, too like Yucay, Urubamba, Chinchero and Moray.
Have you picked up a guidebook yet?
The Frommer's Peru is pretty good.
Also, if you just search threads here with the names of these places, you'll find LOTS of info.

I'll be sure to post a report when we get back.

Good luck and happy travels

A car is nice to have out in the Sacred Valley, but is a headache to have in Cusco, and, of course, can't be used at all to get to Machu Picchu.

I find public buses out in the valley to be a bit on the crowded, chaotic side. You can negotiate prices with taxi drivers, or your hotel could arrange for a driver to take you where you want to go.

Oops, guess I should have clarified.
We are renting a car on our way out of Cusco to tour the Sacred Valley. We will NOT be driving in Cusco.

We have train tickets from Ollayantaytambo to Machu Picchu.

Is it possible to get a taxi from Aguas Calientes to Ollantaytambo or is the train the only option?

Train or foot is the only option. There's no road.

If you do decide to rent a car just be extra careful. We hired a driver and he hit a cow.. all was fine in the end but it was a bit unnerving.