1. She went to town and spent two hours just walking around. 3. If you want to go to town, my wife can lend you her car. In both cases "to" is correct, but in the first two sentences, you could use "into". She went INTO town just does not sound as natural.

Thank you both for you help.

I agree with Courtney. I think “into” would only be used in certain contexts. For example, I grew up in a rural area, in the country, and if we were going to the center of the town (with the shops, stores, etc) we would say “I am going INTO town”

Personally, I would say "to" but I think this varies by region. Where I'm from, we would never say go "into" town. However, I have heard people word it that way before. An example: If you live in California and you are going to Wisconsin (a different state) you might say "I'm leaving tomorrow to go to Wisconsin." Whereas, if you live in Ohio in a nearby town and were going to Cincinnati one of the cities, then you might say I'm going into the city tomorrow meaning you live nearby but not in the city. Either way, I would still say "to" but this is just one example of the context I have heard "into" used in. Nonetheless, I'm not sure which is "grammatically" correct, maybe someone can answer that. But, as a native speaker myself, I think any native speaker would know what you meant regardless of which one you use. I have heard both, but almost always it has been "to".