The answer is están, because you’re talking about location.
Answer:
1. Cuando Paquita <u>era</u> joven, le gustaba nadar.
2. De niño, Armando <u>veía</u> la tele solo una hora cada noche.
Explanation:
1. "Iba" means went (from verb to go), while "era" means was (from verb to be). Therefore, "Paquita iba joven" has no sense, but "Paquita <u>era</u> joven"
2. "era" means was (from verb to be), while veía means seen (from verb to see). Therefore, "Armando era la tele" has no sense, but "Armando <u>veía</u> la tele"
