Loc: Phila., PA, USA
Another usage controversy: Caminando is all right (and correct) but in cities I think paseando por las calles is more appropriate. I use caminando where I would use 'hiking' or 'trekking' in English: If you are doing the Camino de Santiago, you are caminando (whether en bici o de pie). In April I hiked from Potes to the Santo Toribio Monastery in Cantabria (unos 2 o 3 kilometros: Caminando; como no?). All one must do is to get there to earn the Jubileo.
Loc: Madrid (Spain)
Eddie is right. "Caminando" is all right and correct. It isn't Latin American usage because we also use it here in Spain.
As for "paseando" there is a sligh difference. "Paseando" implies you are "caminando" but mainly for pleasure. That is, you are watching the windows shops, enjoying the sun... When you go to work everyday you don't go paseando. You go "caminando" or "andando". Both are correct.
And about the "Camino de Santiago" if you do it on a bycicle then you are not "caminando". You are doing it "en bici".
The best tips from your favourite hostal in Madrid. Hostal Chelo at http://www.chelo.com
Loc: New York, New York
MM's En la terreza reminds me that there are three prices for drinks/food at bars: bar, mesa, terraza. So, we could be bar members, mesa members, and finally graduate to the terraza!! just having fun, MM.