Chiloe Archipelago consists of quite a few islands with Chiloe as the main island. To get there, one takes Route 5, the Pan American, to the very end where you drive right up onto a ferry which will take you to the island. It couldn't be more hassle free. There are ferries running between many of the islands.
Castro is the third oldest town in existence in Chile and dates back to mid 1500s.
On the streets of Castro
Chile and Argentina - next: Aysen - Part I Around Coyhaique