We received good service from Peru Treks, the tour operator that handled our Inca Trail trip. You need to book several months in advance. We had a good stay at the Hostal Rumi Punku in Cusco, which has modest rooms but a comfortable lounge area with free coca tea and Internet access.
Food-wise, we both grew to love tacu tacu, a seasoned rice and bean dish. I enjoyed ceviche, a concoction of cold seafood and lime juice; Gerritt was less impressed. Two (tourist-friendly) restaurants we really enjoyed were Trotamundos in Cusco and La Choza Nautica in Lima.
LAN airlines was a good choice for getting around Peru. We received poor service from American Airlines in Lima and Miami.
Lonely Planet Peru
The Inca Trail by Richard Danbury
Lost City of the Incas by Hiram Bingham