In touristy places, such as Acapulco and Tijuana, US dollar bills are almost as easy to spend as pesos. Of course the big disadvantage with cash is that once stolen or lost, it's gone forever. For that reason, most travellers prefer to bring plastic and/or travellers' cheques (personal cheques are virtually worthless in Mexico).
But do bring some dollars cash - sometimes you won't be able to change anything else. It's also a good idea to have a mixture of denominations, including a wad of single dollar bills, and to try to bring some pesos (US$50/£30-worth, say), just in case you're unable to change money on arrival, or would rather not wait in a long line to do so.
Although few US banks keep foreign currency on hand, and banks in Britain, Australia and New Zealand are unlikely to stock Mexican pesos, you should be able to order them from your bank's foreign desk if you give them a few days' notice; or you may find them at specialist exchange desks at the airport.
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