I never visited Paraguay but I've heard there's a fee to get a tourist visa. I met up with an American couple who travelled there and they said it was very cheap living but they couldn't wait to get out. That's after they'd come from Bolivia, which is saying something.
Did you ever make the trip? (just noticed the date on the original post).
I think their main complaint is it was raining the whole time and they stopped in a border town called Ciudad del Este and they kept saying they didn't feel safe there. I met up with them in Brazil and we got into a long conversation about road conditions in Bolivia/Paraguay. Long story short... the roads are not good.
Although they had visas, they got into a sticky situation trying to get out because they didn't get their passports stamped on entry. They'd been told incorrect info about all of this and trusted the wrong people. The border guards wanted $100 from each of them but worked that down to $50 so they could get out.
the last time i checked, a usa citizen needed to pay for a visa to enter paraguay. A piece of trivia is in the north of the country there is a large menonite community. apparently they own enormous tracks of land. i think one main town is called filidelfia. i think thats how they spell it. i think it would be interesting to see how these people are living etc.
You can get more info in Feria de Turismo in la Rural of the Plaza Italia from Nov. 17th to 20th, As I know a great group of Paraguay dancers - they will dance with 10 to 15 bottles on head will act at 17 oclock on Nov. 18 please go to see them and you can ask any thing you want in the Stand of the Ministery of Tourism in Paraguay.