1. Before you go, check how much your credit cards charge for foreign transactions, and how much your bank cards charge for withdraws. If you decide that you'd rather take cash than paying those fees, make sure your large bills (I'm assuming $100 and larger) are "new bills". For US dollars, that means that the serial number in the top left corner of the bill does NOT start with 'A', 'B', 'C', and 'D' (as of October 2010). The Taiwan banks will charge an extra NT$0.30 per US$1 for the old bills, that means NT$30 for a US$100 bill.
2. Unless you are used to driving in Asia and probably Europe for that matter, I wouldn't rent a car in Taiwan. A lot of the side roads are really narrow. Many two way streets have cars parked on both sides that they are really one-lane alleys. The parking spots are tight too. I just know that I wouldn't be able to navigate around many of those parking lots.
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