Chinchero is one of the few towns in the region that is higher than Cusco (it's located at 3,763 metres/12,500 feet) and so make sure you are acclimated before walking around.
The ruins at Chinchero consist of a series of nested terraces rising up to a plateau upon which sits a church built in the early 1600's.
Also at central plaza stands a colonial church that built at 1607 on Inca ruins. The interior is absolutely amazing and a must see.
There are several hikes that can be done from Chinchero. If you walk through the ruins, down into the valley, and follow the path along a riverbed, you will eventually emerge, after a few hours, at a small town (name forgotten) where there are frequent combis to Urubamba. The path goes along the side of a verdant steep-sided valley offering beautiful views.
There are many stores that sell textiles. On Sundays there is a big flea market.