This is a book I want: Andean Folk Knitting: Traditions and Techniques from Peru and Bolivia. Apparently, it is out of print, but recommended by Suzanne.
The place I want to visit is Otavalo. It has a huge market, where one can find wool, alpaca, and things made from both, including yarn! I can't wait to go. I will, of course, send pics and info.
One thing that is both frustrating and encouraging is that there is almost no information for knitters about where to buy yarn in the Andes (or any country outside of the US and Europe for that matter) on the web. I hope that this blog becomes a resource for those of you who want to buy yarn when you travel. It is a start, but ideally, it should be collaborative. So, if you want to share recommendations about where to buy yarn in the Andes, South America, or anywhere else, please email the blog at lanapuraquito at gmail dot com or leave a note in the comments.