Places to Bike
There are a number of good options for cycling on PEI. The Confederation Trail runs from one end of the island to the other. It is the remains of the railway that once existed here, now the trail is great for getting out and seeing lots of the island.
Places to Avoid
For whatever reason, drivers in PEI are not very aware of cyclists on the road. They do incredibly stupid things around bikes, so if you are biking around traffic be aware that they may do something erratic. Combined with the lack of places to lock up a bike in Charlottetown and the lack of bike lanes it is hard to recommend cycling as a way of exploring the Capital. Many highways around PEI do not have a paved shoulder, or much of a shoulder at all. Extreme caution should be taken while cycling in the countryside, as the speed limit is also often 90km/h.
In PEI it is mandatory that anyone on a bicycle be wearing a helmet. Failure to do so will result in a warning or $120 fine.
Bikes can be rented at Smooth Cycle (anywhere else?)