Transportation in Magong relies highly on scooters. Scooters may be rented from a large number of rental shops in the downtown area, within walking distance from the ferry terminal. They can also be rented at the airport. A Taiwanese driver's license is usually required, though many do accept ARCs, foreign driver's license, and possibly passports. Rental rates is NT250-400/day (24 hours), depending on the size of scooters. Remember to always wear a helmet when riding a scooter.
Other than scooters, there are many private taxi companies operating in Magong. Taxi drivers prefer flat rates to using a meter. For more information on taxi, check out http://www.penghu-nsa.gov.tw/user/Article.aspx?Lang=2&SNo=02000143
Accommodations in Magong range from high-priced hotels to budget backpacker hostels. Here are contact info for several budget accommodation (some webpages are in Chinese).
Under the Sea Wind Homestay 886-975-038-560 886-6-921-3771
Email: under.seawind@gmail.com
Blog: http://underseawind.blogspot.tw/
Penghu Moncsor International Youth Hostel 886-6-921-9681
Email: moncsorhostel@gmail.com
Blog: http://penghu-moncsor.blogspot.tw/
Penghu Youth Activity Center 886-6-927-1124
Website: http://penghu.cyh.org.tw/eng/
Ju-Dao Day Rent 886-6-927-4250 886-6-927-5780
Email: phseaview@gmail.com
Link: http://www.phsea.com.tw/forum/forum.php?mod=viewthread&tid=5087
Bayhouse Hostel Penghu 886-6-995-3005 886-934-263-005
Email: hello@bayhouse.tw
Website: http://www.bayhouse.tw/index.php/en/
Dream-Building B&B 886-6-921-3328
Email: dream.ken0526@msa.hinet.net
Website: http://dreamken.myweb.hinet.net/
Love Penghu Homestay 886-928-703-060
Email: lovepenghu2010@gmail.com
Website: http://www.penghu-whale.com/
Magong Catholic Church 886-6-927-3104
Driftwood Backpacker Hostel 886-933-627-183 886-6-926-7126
Webpage: http://www.gogoph.com.tw/bagwood/