We really liked this little town. Had great parking on the main drag and no parking meters! (looking at you Durango). There are good boondocking sites 30 minutes out of town, but due to the rain, we stayed at the restaurant at the edge of town.
Pegosa is known for the awesome hot springs. You can pay some of the commercial sites for access or you can go down to the park and have a dip for free. There is a good sized farmers market on the weekends, and a great big recreation park in town as well. Good free dump stations near the Walmart and cheap laudry as well. Two thumbs up!