Would like to know about getting money in India. Had planned to use my ATM card to get cash at the airport and then use my credit card the rest of the time -- hotel bill, purchases in more upscale shops, and restaurants. Is there difficulty getting money? Should I taken Dollars?

not bad..

some atm's don't give $$ to overseas customers and some limit the amount (sm amount), but most are just fine.. no fees..

i had to try more than one on a few occasions, but there are plenty around

I don't remember having any problems. If one doesn't work there's bound to be another close by, but I don't think I had any rejections. If there is a limit per transaction, you can usually just repeat the transaction.

a. ATM machines, nowadays are available in practically all destinations. In bigger towns there may be a number of outlets of different banks. In comparatively remoter areas (like say Jaisalmer) there may be fewer. In such destinations, the transaction money drawn may also be small, at one go.
b. The best modern machines, in my experience, belong to the ICICI, HDFC, Axis Banks, apart from the foreign equity banks like the Deutsche, City, HSBC etc. Of the government owned banks the SBI & OBC are very good. Beware of the machine which swallows your card!
c. While drawing heavy amounts on your credit card, do inform your bank that you are leaving for India and there may be largish transactions. Sometimes the card gets locked automatically, entailing endless calls to the parent bank!
d. Keep a sharp eye on your card when being swiped at unknown shops, for security.
Happy & safe travels!

As said above, sometimes an ATMs will not work with your card, but if you go down a block or two, the same bank's machines there will take it. ICICI seemed to work the most often, and their signs are easy to spot. One problem can be that ATMs give big bills. I would ask for change everywhere so as to have lots of small Rs notes for cabs, tips, etc.

You should not have a problem as there are plenty of ATM's in the major and mid sized cities. If you are going to visit a smaller town, then withdraw money before you go there. You will get the money in Indian Rupees. There is usually a 2% charge levied so keep that in mind and you can use the ATM / travelers checks/ cash mix accordingly.

The charge depends on your home bank.

No need to take cash or travelers checks. ATMs are everywhere.