Several years ago a close friend of mine was robbed and beaten by a taxicab driver outside of Ensenada, and was left for dead several miles off the main road.

After hiking through the desert for several hours he came upon a police station. The officer that took the crime report asked if the taxi driver had gotten all of his money, to which he said no (he still had $200 hidden in his shoe). The officer demanded that he give him this money, and then told him to return home and be thankful that he was still alive.

I have been stopped several times while driving in Mexico for bogus traffic infractions -- everytime I have simply paid the "fine" at the scene and moved on. It is very helpfull to keep the majority of your money in a separate pocket, as the "fine" is typically whatever amount you can produce.

I've also found it is helpful to have a bunch of ones and fives in your wallet, as the cops down there tend to be more concerned with the quantity of bills that you have, versus the individual denominations of them.

Jim