Puerto Varas is in the south of the country, surrounded by lakes and a superb backdrop of volcanoes, and is the Chilean terminus for a crossing of the Andes from Argentina by multiple ferries across large lakes and several busses over dirt-tracks -- an exciting all-day journey.

Valparaiso is a famous port city perched on several hills overlooking the Pacific, whose heyday was at the beginning of the 19th century, before the Panama Canal made it largely irrelevant. For a while it languished, but more recently exploiting its history, it has become renowned for it's artist's colonies and, in particular, the street art on many of it's houses. Obviously, this had to be in color :).