Lima is a somewhat dangerous place. No there is no terrorists from Shining Path (Sendero Luminoso) any more. But there are a lot of thiefs, beggars, etc. It's better not to take anything from these funny guys as well... otherwise they'll become annoying asking you to buy more and more.
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I was in Lima at that time too! - Oh, no, I am mistaken - I was there in February 2006, at the time of your post. Irina