The State Dept seems to think they should be avoided. Anyone have any advice based on first-hand experience? Is it better to bring travelers checks and avoid the ATMs? Thanks.

For past five or six years I have always used ATMs in Mexico, including a trip two or three years ago to Oaxaca. I never take traveler's checks; they're often hard to cash in smaller businesses or more remote towns. I presume you are worried about being robbed _ my experience has been that ATMs are often actually inside the banks, which might feel safer than one on the street. Also, I don't use them at night if i can help it _ but I don't usually use them at night in the US either...

There are lots of ATMs in the Centro Historico part of Oaxaca, most in sort of lobby areas of banks. Oaxaca is very safe and walkable in the tourist section, and I had no hesitatrion using ATMs there. It was a little creepy at night in Mexico City, but Oaxaca felt much safer.

I go to Oaxaca several times a year. I was there in January and am going again on Monday, You get the best exchange rate at the ATM machines. As far as I know the city is very sfae. I know many Mexicans and permanent residents there who say the city is virtually crime free, excepet for petty theft. I use the same common snese I would anywhere, i.e. lighted, other people around, etc. but I would not hesitate to use an ATM. I have walked all over various parts of the city 24 hours a day with no problem. Have fun!!

Thanks to all for the feedback. Since ATMs do offer the best exchange rates and are more convenient, I also prefer them. Sounds like they're fine under the same safety conditions as here at home. Thanks again!