Text of an article from Guardian unlimited:

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Rory Carroll, Latin America correspondent
Tuesday September 18, 2007
Guardian Unlimited

The meteorite impact crater high in the Peruvian Andes

The meteorite impact crater high in the Peruvian Andes is said to be emitting noxious fumes. Photograph: EPA


A meteorite has struck a remote part of Peru and carved a large crater that is emitting noxious odours and making villagers ill, according to local press reports.

A fireball streaked across the Andean sky late on Saturday night and crashed into a field near Carancas, a sparsely populated highland wilderness near Lake Titicaca on the border with Bolivia, witnesses said.

The orange streak and loud bang were initially thought to be a plane crashing. When farmers went to investigate, however, they found a crater at least 10m wide and 5m deep, but no sign of wreckage.

The soil around the hole appeared to be scorched and there was a "strange odour", a local health department official, Jorge L�pez, told Peru's RPP radio.

Later the farmers complained of headaches and vomiting. Police who went to investigate the crater were also stricken with nausea, prompting authorities to dispatch a medical team that reached the site today.

"The odour is strong and it's affecting nearby communities. There are 500 families close by and they have had symptoms of nausea, vomiting, digestive problems and general sickness," said Mr L�pez.

At least 12 people were treated in addition to seven police officers who required oxygen masks and rehydration.

The farmers expressed fears that what appeared to be chunks of lead and silver around the site could contaminate the soil.

A member of the National Academy of Sciences, Modesto Montoya, told the state press agency that a fallen meteorite did not present any danger unless it hit some structure on impact.

"None of the meteorites that fall in Peru and make perforations of varied sizes are harmful for people, unless they fall on a house," he said. Another meteorite fell to Earth in Arequipa province in June.

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I suspect the crater was carved into an area of underground hot springs, and that the gas is mostly hydrogen sulphide. But further investigation is definitely in order.

very interesting! thanks for post!
on the photo a plain area can be seen around the crater.
are you sure it is the best "general region" for the mark? (maybe 20kms south?)
have gone for some aerial...!
regards,
g

EDIT:

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Rescue teams and experts were dispatched to the scene where the meteorite had left a crater 30m wide and 6m deep, said local official Marco Limache.

"Boiling water started coming out of the crater and particles of rock and cinders were found nearby. Residents are very concerned," he said.
http://www.news.com.au

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Scientists have since been sent to the village of Caranca , located in a remote region of Peru near the border of Bolivia, where they will gather samples of what is believed to be a meteorite. The samples will be taken for analysis in Peru's capital of Lima.
http://www.clevelandleader.com/node/2971

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are you sure it is the best "general region" for the mark? (maybe 20kms south?)

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Nope. It is just to point out the part of the world really. If you find anything more precise, add it to the thread. I'm sure it's not long before we have better information. I have several Google searches set up for it now. If it amounts to anything, I'll transfer the thread it to N&G.

have found that village Caranca in an article (my 2nd quotation) but it does not seem to be "our" Caranca being far from the border mentioned...

I think the name was misprinted; we are looking for Carangas - which I still have not found.

Source: http://www.alertnet.org

This is a good zoomable map. Even so I can find nothing of Carangas, Carancas, or anything similar.
Peru map

I could not find the town mentioned in all the international news reports

The nearest name i found near Lake T and in Puno Province is Capachica [ 15�38'22.34"S 69�50'12.34"W ]

It just goes to show how the news orgs play ' follow the leader ' !!

Chiarcagua , found on the MSN Encarta map pretty well fits the bill for location and the spelling is close enough to the ones in the news reports. I'll adjust the placemark in the initial post to place it.

It appears to be near a lake bed in an area where the water table is close to the surface. There's a good chance there could be hot springs there.

EDIT: More recent information puts the likely crater back closer to the original description. I've edited the original post placemark to a polygon covering probable area of the crater.

EDIT: Carancas found in a database, so the location of the placemark in the initial post has been moved again. I'm so

RSOE HAVARIA Alert Map ( KMZ Network Link ) (from THIS post by HunNomad) reports:
Cosmic event, remote village, located in the high Andes department of Puno in the Desaguadero region, near the border with Bolivia.
well Desaguadero is easy to find at 16�34'4.95"S, 69� 1'42.03"W

sure it is Carancas we search:

article

more pics and articles:
The Advertiser
The Signs of the Times News

There is a BBC report HERE along with a video report. Still no closer to a definite location.

The latest information HERE and HERE states that scientists have definitely confirmed the object was a chondrite, a type of meteor, and that medical authorities are still studying the illness.