It is a one hour bus ride from the City of Loja. There are international buses from Piura (8 hours US$8) on Peru´s Panamerican Highway 3 times daily. Transportes Loja has buses from Loja throughout Ecuador. Access is also possible from Iquitos & Chachapoyas in Peru via the frontier at Balsas & Zumba
A camioneta cooperative is run from the main square. It is 1$ to get around pretty much everywhere in the town.
Las Palmas cloud forest reserve
Rumi Wilco Nature Reserve (Entrance US$ 2 p.person, good for several visits)
Self-guided treks or hire a guide into the surrounding mountains or the national park Podocarpus. Many hotels (including Cabanas Rio Yambala, Rendez-Vous, Rumi Wilco, and Izhcayluma) have trail maps. Or just pick a direction and walk the dirt roads going into the countryside. Beautiful. WARNING: Don't take any values up the Mandango mountain - many armed robberies have occured there over the years, continuing into 2009. All other trails appear to be safe.
Rent a mountain bike at El Chino (corner of Diego Vaca de Vega & Jose David Toledo), $8 per day. Ask for a map of where to go. Recommended.
Do a 2 hour, 4 hour, or 1-3 day horse-riding trips. There are quite a few reputable tour operations in town. Tours to Las Palmas cloud forest can be arranged through Cabañas Rio Yambala, 4km out of town.
Get a massage, manicure, pedicure or waxi at a few locations in town or at Hosteria Izhcayluma, 2km south of town. Massages at the salon next to Yogurt cafe (just off the main square) are good and cost $10 for one hour. The best massages in town, however, are done by Lola, of Shanta's restaurant/bar (10 minute walk from parque central, on road to Craig's Book Exchange). She only does two per day and appointments are hard to come by, but it's worth the effort. She starts by giving you an all-over assessment of what's needed, then proceeds to give a powerful manipulative massage, incorporating many modalities: chiropractic, Swedish, Eastern styles. She's very empathic and has 14 years experience plus lots of training. She uses hot oil, mmm.. $14 for 80 minutes.
Spend a bucolic afternoon at one of the restaurants around the main plaza.
Yoga, Community Cultural Center (corner of Agua de Hierro and La Paz, 1 block behind Rendez-Vous hotel). 10am-12pm. Tuesdays and Fridays at 10am. Beginning-Intermediate yoga. Mats provided. Nice people, good class. Only $3 for 2 hours!$3.
La Terraza: Central Plaza (corner of Diego Vaca de Vega and Bolivar). Serves Mexican and Italian food. Excellent chicken fajitas and nachos. Mains are $3 to $6.
Charlito's: (on Diego Vaca de Vega, above Sucre) Run by a friendly Virginian named Charlie, they have good cheap food and drinks. The veggie sandwich is especially recommended, inexpensive and filling.
Shanta's Bar: Calle Diego Vaca de Vaga, past the bridge, 15 minute walk East of town. Cool atmosphere with a cowboy vibe. Bar seats are horse saddles and the walls are covered in international money, weird animal hides, and neat photos. Serves pizza, filet mignon, and pasta. Good food. Mains $3 to 6$. Large menu of drinks, including their homemade Snake Drink moonshine.
Izhcayluma. 2 km south of center. Taxi to get there is 1 US$ or a 20 minutes walk uphill. Don't confuse with the neighbour "Asadero el Molino de Izhcayluma". Excellent international food, some German dishes too. Good vegetarian options. Stunning views from the panorama restaurant. Mains $3 to $6. Open till 8 pm for the last order, closed on Mondays. Busy in the evening because of the hostel guests.
Vegetariano, Valle Sagrado (btwn Dego Vaca & Luis Fernando). Excellent and inexpensive veggie almuerzo.
Izhcayluma. 2 km south of center. Taxi to get there is 1 US$ or a 20 minutes walk uphill. Lively bar inside the same named hostel with ping pong and pool table, dart board, open to the public. Variety of cocktails, some under 2 US$. Large beer for 1,50 US$. Community of international backpackers, good to meet new people. Bonfire some nights. Open every night from 7 pm. If you don't stay at the hostel it will be difficult to go back to the center, prepare for a night walk.
El Punto, (corner of Sucre & Diego Vaca de Vega). A popular hang-out. Wednesday nights there is an informal poker game amongst the ex-pats who live here. Weekend nights a band usually plays.
Charlito's, (just up the block from El Punto). A friendly place to hang out and meet people. Gavin the Kiwi is often here and has many drunken stories to tell.
El Agua de Hierro is under new management(same family as former owner), and it's actually a nice place to stay, with swimming pool, jacuzzis, sauna, steam room, bar, all the amenities. Dorm beds for $7, private rooms starting at $12. Long-term rentals available for $150/month. You may see reference to a terrible saga of the former owner slipping horse tranquilizers into female resident's drinks, then using his master key to get into their rooms at night and raping them. This repeatedly happened over the course of many years, it was even mentioned in the 1994 Lonely Planet guidebook. See this article  The hotel used to be named Hostal Ruinas de Quinara. As of early 2009, this man has finally been run out of town, and the police at last have a warrant out for his arrest.
Cabañas Río YambalaThe best trekking, birding and relaxation in Vilcabamba. Visit waterfalls in Ecuador's most biodiverse cloud forest, lakes in the alpine paramo and our unique Tree Canopy Adventure.
Hostel Le Rendez-Vous: Calle Diego Vaca de Vega 06-43. Owners are a French couple Isabelle and Serge. Beautiful cabanas around a garden. Very clean, very nice, and lots of hot water. Breakfast is included: home-made bread, eggs or fruit salad, fresh fruit juice, coffee, tea, hot chocolate. 1 person is $15 per night, 2 people are $12 per person per night, and 3 people are $11 per person per night. They have a large collection of DVDs with a portable TV/DVD player, hammocks, information booklets on Vilcabamba, Ecuador, and Peru, hiking maps of the area, and WiFi ($4/day). 
Hostería Izhcayluma: Owners are 2 young German brothers, Peter and Dieter. Located about 2KM out of town, overlooking the valley. Different kind of accommodation, surrounded by fantastic tropical gardens. Dormitory bed for $10, double room for $12-14 p.person, single room for $19. Generous buffet breakfast is included: home-made bread, eggs or crepes, fruit salad with home made yogurt and granola, fresh fruit juice, coffee and tea as much as you like, etc. Private cabañas also available for more. A creative swimming pool and spa services (massages, facials, etc.) are available. Several self guided hiking trails are offered in the Vilcabamba area with excellent maps based on air fotos. The panorama restaurant with great views is also open for lunch and dinner. They have a large collection of DVDs which can be watched until 6PM. On-site bar with a pool table and ping pong table opens at 7PM. There's a great community of international travelers to be found. Wi-Fi connection for free. This place is one of a kind and definitely worth a visit, even if only for a meal with the incredible view. 
La FloridaLong-term rentals only. Basic but decent one-bedroom duplexes with private bathroom and kitchen for $150/month. Rooms with private bathroom and shared kitchen for $100/month. Room with shared bathroom and shared kitchen for $80/month. Located across the street from Agua de Hierro.
Las Margaritas, (one block south of Church). Probably the best value hotel in town. Nice modern rooms with cable TV and private hot water bathrooms, swimming pool and breakfast included, for only $8 (single) per night!