Mohan:
We needed money also to pay the balance of our apartment rental. I knew that the machine at the airport would not be enough, so only that time did I go to the currency exchange at the airport. I know that it is more than an atm, but I felt it was the best option for a large sum of money. After that we used the atm when we needed money. I also call my credit card company before I leave. They have been known to block accounts if they get a charge they question. Better safe than sorry.

Odd-man-out here... I needed to do the same thing; lots of "cash" for the apartment. Anyway, I have a friend who works for a bank and she got me Euro's for dollars without any fees for that days rate. Worked for my piece of mind anyway. AND, I LIKE having some on me when I arrive. It makes me feel better.
I guess I'm the wussy.

the info from 'brotherlylove' is misleading at best. you can NOT spend Travelers Checks euro or otherwise in just any old shop, restaurant, or business. would most likely require a trip to the bank. and i can't believe they have no fees and perfect exchange rates (or everybody would be doing this!).

ATM is the way to go. 2 cards is a good idea. back it up with Euro bought at home, if you are feeling insecure and willing to pay extra for this convenience. take a charge card or two. tuck away some U.S. bills for emergencies.

I would only consider travelers checks if your trip is a long one, or you must pay hotel bills in cash.

We reserved with credit cards for hotels
and rentals car but paid cash at checkout and when we returned the car,
Except for the deposit for the insurance
and we used our ATM CARDS for cash. The exchange rate was the best and the fee was $1.50 each time, but worth it! We also had 5 $100.00 bills and $500.00 in travelers checks but they were useless!
I couldn't find an ATM in this little French town on our way to Paris and we wanted to go to the supermarket there so I went to a bank next store the market to cash a $100.00 bill or a travelers check but was told I need an account at the bank to cash one! The bank had an ATM but it was out of order, we found one at the post office and went to the market.

If the bank is a MC or Visa bank, and if your ATM card is a debit card (with a MC or Visa logo) you could have requested a MC or Visa cash advance which on your end in this case would trigger a withdrawal from your chequing account....a procedure I often use in the US when I don't want to pay the asinine fee banks charge for having the audacity to use their ATM's, a fee which does not exist in Europe.