Money & Safety

I don't know the specifics for Uganda, but I stopped taking travellers cheques to African countries some years ago, as I found it both dificult & time-consuming to change them. I imagine Uganda would be the same, but if you must take TCs, American Express used to be the best ones to take. I doubt the currency makes much difference. Cash is quick to change and the best rates are in Kampala. Change as little as possible at the airport, they have dreadful rates. If your bank has reasonable charges for using ATMs, they are easy to find.

There's plenty of public transport, all of it (and the private cars too) driving too fast. Buses are pretty comfortable and not usually too overcrowded, matatus (minibuses) can get quite cramped, but not as bad as the shared taxis. These would be my last choice of transport as passengers are not only packed in like sardines - 3 people plus the driver in the front row of the car - but also driven by lunatics. There are also motorbike taxis which are good for short rides.

Uganda felt pretty safe to me, no special precautions necessary to take care of your stuff.

As kaz said, travelers' cheques are a 20th century relic. Take two ATM/credit cards with Plus or Cirrus, pack one in your luggage and carry the other on your person to guard against total loss. Withdraw local currency from the ATMs. If you are crossing multiple borders, bring US$200 or so for visas.

It's the only strategy I've ever needed. There are Western Union/Moneygram offices nearly everywhere if you have an emergency and need funds sent from home.

Changing Travellers cheques in Uganda is VERY difficult and rate is not good and probably impossible in places like Masaka and Mbarara (there was a bank in Kabale that took them a year ago)

I would recomend taking a VISA debit card as these are the most widely accepted.

Where possible I would take the post bus but otherwise as above the other buses are better than the minibuses but you may have no choice and have to take mini bus or shared taxi

Uganda is safe providing you take the normal precautions you would anywhere

Second BigAl's comments. Take Visa rather than Mastercard. ATMs widespread these days - Masindi, Kabale, Fort Portal, Jinja etc. Forget cheques - change as much as possible in Kampala and where there are agglomerations of Forex bureaus as you can often play one off against the other.
With common sense you should be ok, as Uganda is one of the safest countries in the region.

Nsubuga, travellers cheques are not linked to your bank account at all, so it is not possible for anyone to use their details to rob you.
Even if the cheques themselves are stolen, as long as you have a record of their reference numbers the originating company will refund them.

No, there's been no change, TCs have always been the safest way to carry holiday money - just not the most convenient.

If it was indeed a travellers cheque, and not a personal cheque you saw being forged, it would be the issuing company the thief was stealing from, not an individual. TCs are NOT linked to a bank account.

Debit or credit cards are far more risky, as they ARE usually linked to your bank account - although you can now get independent travel cards you can just pre-load with an amount of money before your travels.
But any plastic is not easy to replace if lost or stolen, hence the advice to take two.

Skimmer attachments to ATMs, hidden cameras to capture card details and PIN numbers, card traps and loitering strangers are all things to be aware of when using plastic.

Google "ATM scams" and you will see that cards are not the perfect solution you suggest. I don't think anyone has yet come up with that, but a combination of cash and cards plus caution and common sense (and maybe even a TC or two as emergency backup!) go quite a long way.

Would recommend to bring US dollars from home, say 250 or 300. Barclays Bank you can find in the larger cities (Fort Portal, Kampala, Jinja, Mbala...). I don't know about the cheques.

Public transport is fine, but as in any large city, keep an eye on your belongings.
Don't show any valuables and keep small money in the pockets of your jeans for easy payments.
Further, when in a private taxi or car, just lock your door for safety reasons.

But in general, don't look afraid and just enjoy the place. Uganda has many friendly and funny people!