Charming little CHICO , about midway between Sacramento and Redding, some twenty miles east of I-5, is a good stop-off if you don't want to attempt to cover the whole valley from top to bottom in one day, or if you're here to visit Lassen Volcanic National Park and need somewhere to stay. Home to Chico State University , the laid-back town is loved by mountain bikers for its many trails. Cheap rooms downtown exist at Holiday Inn , 685 Manzanita Court (tel 530/345-2491 or 1-800/310-2491; $50-75/$75-100), and there are several good restaurants, notably La Hacienda Inn , 2635 Esplanade (tel 530/893-8270), a Mexican spot famed for its special pink sauce, known as "Heroin Sauce" for its addictive sweet flavor.


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