I've been to Mexico five times for vacations over the past ten years.  Taxis are inexpensive and the service is very good so I would opt for a taxi unless you really feel a need to have a car for other reasons.  Blast's points are spot on.  I've always been in tourist areas and have never had problems with any of the people or the language barrier; I don't speak Spanish.  Mexican's can park cars in the smallest of spaces, another reason to take a taxi unless you are good at that sort of thing -not one of my strong points.
Cash - carry small bills, they always seem to have problems changing larger bills.  I usually start with a couple hundred US dollars, nothing larger than a $10, lots of $1's, and then hit a cash machine as soon as I can.  You'll get a great exchange rate via a cash machine - better than a bank or on a street.  Also take out larger quantities of cash to avoid too many atm fees.
Stomach -I generally get a touch of problems each trip.  This past year I finally got smart.  I started taking Pepto Bismol morning and night every day as a precaution.  That seemed to work well.  Rather than waiting for symptoms to appear, get ahead of the game.  If symptoms start to appear, then add imodium.  I had no problems this year for the first time.
Puerto Vallarta was my first trip to Mexico, I wish I were there now.