Chiloé Island is in Chile.
The time to visit this island is definitely in the summer (southern hemisphere summer).
Chiloe is famous for myths and legends with roots in its native population but with some European influence. Even though the island was Christianized by Spanish conquerors (you can visit many of the Jesuit wooden churches all over the island) its inhabitants are also very superstitious. A singing, fair-haired beauty similar to the German Lorelei is called la pincoya. It is said that if she dances towards the coast the sea will bring a lot of fish. A ghost ship carrying the souls of wrecked sailors, similar to the Flying Dutchman, is called caleuche. And if someone tells you he or she was seduced in the forest, it might have been the fiura or the trauco, which is often blamed for venereal disease or an awkward pregnancy. A very pitiful figure is the invunche; as a baby his orifices, including his eyes, were closed and one leg was sewn to his back, so that he walks on three legs.
Speak Spanish! There may be a few people that know some English but try to respect the culture. Showing that you're trying means a lot and the people there will try to work with you!
Chiloe Island is located 1016 km. from Santiago and 90 km. southwest of Puerto Montt. To reach the island, you need to travel southeast from Puerto Montt towards Pargua, where you have to take the ferry across the Canal de Chacao. Ferries take buses and cars over on a regular basis, between 6:30 a.m. and 12 p.m.
The fastest way to get to Puerto Montt is by airplane, from P.Montt you continue to Chiloé. The non-stop flight between Santiago and Puerto Montt lasts approximately 1 hour and 40 minutes and there are at least four flights per day. LAN Chile now (November 2012) has flights from Santiago to Castro, Chiloé.
It takes 14 hours to travel between Santiago and Ancud by bus. Ancud is northest large city in Chiloé. A good level of service and comfort can be found on buses which provide semi-bed and bed seats.
Santiago to Puerto Montt by car takes approximately 13 hours, taking Route 5 south to Puerto Montt, then head southeast toward Pargua. At Pargua, visitors board the ferry which crosses the Canal de Chacao to Chiloé. The ferry ride lasts around 25 minutes.
The bus system is pretty effective. In order to get around with ease knowing some Spanish would help a lot.
There are quite a few local sites to be seen throughout Chiloe Island. Since it was separated by water from the mainland, many of the local traditions have been preserved here, instead of merging with the Spanish culture after the conquest.
The Bay of Caulin offers the chance to see locals actively rounding up seaweed in their daily tasks, being collected by hand and with ox-carts. The Bay of Ancud also offers great views and chances for kayaking. An old Spanish battery can also be visited on the North side of the bay. The Puñihuil Penguin colony is located on the north side of the island along the Pacific coast. Chiloe's National Park and Ahuenca region are habitat for diverse and abundant wildlife.
Few tour companies offer guided tours on Chiloe Island, as most Lakes District tourism activity takes place in the areas around Osorno Volcano, Lake Llanquihue, and Pumalin Park further northeast from the island.
Seafood, seafood, and more seafood. Delicious and cheap! Curantos and Parrilladas are a must!
Yerba Mate, Pisco, Pisco Sour
Occasionally the water temperature in southern Chile rises sufficiently to create algae bloom. Consumption of some shellfish can cause paralytic shellfish poisoning (http://en.wikipedia.org/wiki/Paralytic_shellfish_poisoning).
One option to leave the island is via ferry southwards. Navimag and Navier Austral offer weekly connections to Chaiten (for the Carretera austral) and Chacabuco.