Camping will be OK, just stay out of town. Petty theft can be a problem, and it's usually kids swiping your stuff. You are better off if you are in the middle of nowhere with no one to bother you. You always have the option of getting a cheap room in a hostel. There are plenty of places to stay in Urubamba. Huarocondo is much smaller so not as many options there but you can find a camp site next to the river on the way to Pisac. And another option to consider is doing this loop clockwise. Cuzco, Rapchi, Pachar, Maras, single track past the salt pans and down to Urubamba, etc,etc. That ST is technical and steep and will be difficult to do on a loaded bike. I did it for the first time on a loaded unsuspended Cannondale because I was continuing on over the Abra de Malaga and down to Quillabamba. If you have to shoot it loaded, you have to do it but I don't recommend it, much more fun if you are unburdened. Of course, if you do the loop clockwise, you lose your nice easy beginning that allows you more time to adjust. It really just depends on how your body is going to react to the altitude.