Spearman, the area below Baolai is crawling with places to camp and hike. There's Maolin, Dona, and Meiya, Shanping Forest Area, Tengchih Forest Reserve, Butterfly Valley, and Luigui which has river rafting. North of Baolai is the Shaonian Chi Scenic Area. You're also not too far from Alishan National Scenic Area. This is not the little village tourists go to but a huge area encompassing many small villages with trails and campsites. Tzengwen reservoir also has some campsites.
This is the forest recreation site. Go to Tengchih. Also check out the others for later trips.
http://recreate.forest.gov.tw/index.php ... st&char=en
Oh, I found out about Shanping through the Discover Taiwan magazine at Caves (Volume 2, May 2003). The mag also has articles on Tengchih (Tungtz) and the trail to Guan Shan which is around Baolai (Paolai)