We ended up staying about 10 days in Pucón and had a fine time. We really liked our two bedroom cabaña at Hotel y Cabañas Monte Verde. It had a woodburning stove to keep us warm and the wi-fi worked more or less well. It cost US$77 a day. Our cabaña was up on a hill overlooking Lago Villarrica and it was beautiful. (Hotel y Cabañas Monte Verde, Km. 5 camino Pucón a Villarrica, fono (56-45)441-351 and (56-45) 442-042, e-mail: email@example.com, web: http://www.monteverdepucon.cl/) And the people working there were quite nice too.
According to "Excursions for Expats, Chile and Neighboring Countries" by Teri McLachlan with Leonie Elphinstone, the area has: "Lush green native forests, silver waterfalls, blue sky with fresh air, active snow-covered volcanoes, thermal baths, fishing, river rafting, parks with hiking, horse back riding, many dramatic cascades (saltos), casino in Pucón, wood and wool artesania and Mapuche culture. (p. 119) Click here to the website for Villarrica and here for Pucón.
The active volcano called Volcán Villarrica
And we had a lovely time discovering the thermal pools. Our favorite thermal pools were Termas Geometricas (Camino Conaripe Al Parque Nacional Villarrica km 16, Fundo Cajon Negro, Aojie, Panuilli, X Region, fono (56-2) 241-1214, web: http://www.termasgeometricas.cl/) They charged us the seniors price CLP$12.000 for the two of us. We really liked the design and the placement of the pools. We could move from pool to pool depending on the temperature of the water we wanted. There was a short hike to the source there too. There was even a tiny place that made delicious soup for lunch. (Lunch 2 soups: CLP$4.000)