I want to chill in Vilcabamba for a few days, swim, drink, and also do some nice hikes. What´s a good hostel for all that, and for meeting people?

We really enjoyed el Jardin Escondido - half a block off the plaza, pool, hot tub, nice open eating area/courtyard where you can meet fellow travellers, lovely rooms, really good food, breakfast included in the price (can't remember exactly how much we spent, but wasn't a lot). Owner speaks English, and there is a board in the courtyard with notices posted on activities and such. Check out the Rumi Wilco trails - its a nature reserve just outside town (about a 10 minute walk), and you can get up onto the ridges for some fantastic views of the valley - there's a website for it, if you search Rumi Wilco, and there's also a craft store on the plaza where there's information about it. Vilcabamba's a beautiful little town, and a great place to kick back and relax - enjoy!