here are some of my recommendations for southern chile.
valdivia osorno
valdivia, maybe:
or the region around the vulcanoe osorno: the village of villarica is recommendable
unfortunately not too many fotos from that wonderful region of lakes, but if you want to have a better picture go to villarica pictures on google
and here is a more detailed map of the region:
never stay at pto. montt except you have a passion for ugly and depressing cities.
for planning your trip via airplane go to lanchile
for more information on southern chile, go to the homepage of the official tourism agency sernatur . they only offer information and you cannot book there.
as you might know, my chile pages are updated, but still available only in german: [more ... ]
Good luck and all my best
cousin g.