This is one of the few towns in Peru where Horse seems to be the primary mode of transportation. But its small and one can walk around on foot. You can not, however, reach the main archeological museum with a short walk though it isn't too far.
The Museum  which was recently built with US$800,000 finance from Austria. The museum contains all of the ~200 mummies found at the nearby tomb at Laguna de los Condores, as well as some artifacts.
Hike to the magnificent Laguna de los Condores. This is usually arranged at the hostel. It is a three day trip by horse - one day there, a second to explore the area, and a third coming back. The trail is dangerous in bad weather.
Leimeibamba is known throughout the region and Lima for its cheese and yogurt. On the corner kitty-corner to the Diner there is a shop that sells fresh yogurt and cheese (The best I ever found in Peru).
A women's handicraft cooperative is located on the square. They sell handmade quality clothes and bags and other things typical to the region.
The Plaza has a basic restaurant with the daily menu called Lucy Ball.
There are two Guest houses near the Plaza of similar quality and price.
Three days a week Virgen de Carmen leaves from either Chachapoyas or Celendin. You can buy tickets at the restaurant -- there should be a board stating departure days and times.
It is very easy to catch a ride with a truck or possibly a tour group if they are not full and go to Chachapoyas. However, if you want to go to Celedin and Cajamarca you have to wait for the Virgen del Carmen bus which is not daily.