You'll love it. Elevation is quite a factor. Take iron before going and hydrate, hydrate, hydrate.
I had forgotten that they kept our big suitcase at the hotel in Cusco..that is correct. I forget if it was in Olantaytambo or Machu Pichu but we had a free afternoon. I did a 5 part spa visit that was the best ever. 3 hours of pampering. For only $166. Once you get to Cusco, you'll get in a mini van and you'll be those people, driver and tour guide the entire time. We were with great people and our tour guide was so good. I'm jealous, I'd do it again in a heartbeat.