What's new in Peru?

My girlfriend and I are going to be in Peru for the next month (flying into Lima). Besides the Inca ruins and surrounding Cusco, what should be explored? Any tips for a good place to stay in Lima (on a shoe-string budget)?

Thanks.

It all depends on how much time you have. A couple of weeks? A month?

In Lima, Malka Youth Hostel; USD8/person. San Isidro neighborhood.

We have a month in Peru, so we are able to take in some different options...

Lots to see in Peru. Arequipa was my favorite city in the country and shouldn't be missed. While there, venture into the Colca Canyon. Lake Titicaca is great, though if you have time, it's worth hoping over to the Bolivian side as well to see Isla Del Sol. Huacachina, just south of Lima is a really interesting place, and the sand buggy rides will give you a buzz for weeks. There is also Nazca which might interest you.
In Lima I stayed at Loki Hostel in Miraflores. I highly recommend it.