One of the great journeys to enjoy magnificent views of the Andes and rural towns of the central highlands is to take the train trip from Lima, Peru to Huancayo, Peru.  This area and rail service were closed to tourists etc in the 90"s because of the Shining Path terrorist group, but the area has now been opened again and after 9 yrs the government reinstated the passenger service.  This service now runs approx 20 trips a yr. ,usually the last Fri of the month.  It runs about $50 per person, though the price varies depending on accommodation and meals.

The trip climbs to Galena, the highest train station in the world.  It traverses some 9 switchbacks to gain altitude, traverses many, many bridges & tunnels to complete the trip to Huancayo.  The coaches have all been refurbished and there is an open ended bar car  for taking photos and  having a rum & coke or whatever with new found friends.  There is also wine service if needed for your meal.  The trip takes approx 12 hrs, and the scenery is nothing short of spectacular, passing lakes, small towns that look like miniatures below, llamas grazing, snow covered peaks to mountains with nothing on them because of the intense mining in the area -- hence the need for rail service.

In Galena, some people may become nauseated and sick due to the altitude, but the good news is if you are inclined to feel sick from altitude sickness there is a nurse and oxygen onboard the train.  Because of the altitude, this trip is a good way to get acclimated to the altitude for Cusco and Machu Picchu. 

You can take the first class bus service back to Lima  for a different view of scenery and a lot faster -- 6 hours  -- trip..  Greyhound would do well to come to Peru and see how to run a bus service: how about reclining chairs , stewerdesses and hot meals all for $20 per person.