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Well... you don't unless you are a local. The roads, directions, rules (or the lack of it) are quite confusing. Parking is a nightmare. You are better off taking taxis and public transport.
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I have heard and read bad things about taking taxis off the street in Mexico City. I was told to avoid the green VW taxis and also to avoid night travel in any Taxi - which is what we did and fortunately never had a problem.
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The underground Metro train system is quite wonderful. If you have travelled by its counterparts in London, NY or Bombay, you will find yourself at home here. If you haven't had the experience, just avoid the peak hours and travel light.
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In order to reach the "around Mexico City" spots, you have to take one of the inter-city buses from the north or the south terminal. We had to take the buses from the N. terminal to go to Teotihuacan, Tepotzotlan and Tula. The buses were very comfortable and on time - we never had to wait more than 10 mts for any of these buses in either direction. Teotihuacan costs about USD$2.5 per head (one-way) and takes about 1 hr (one-way). Tepotzotlan costs about USD$2 per head and takes about 1 hr (one-way). Tula is an hr away from Tepotzotlan and 1.5hrs from the city centre and it will set you back by USD$4.
Must See: Churches/Cathedrals
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Catedral Metropolitana (Metropolitan Cathedral)
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Basilica de Guadelupe
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Iglesia de San Francisco (the one on the Ave. Madero)
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Iglesia de San Francisco Javier, Tepotzotlan - to reach here you need to get down at the main road and take a taxi (USD$4) or a rickety public bus (USD$0.5). The inside of the church is quite spectacular - you will be surrounded on all sides with gigantic gold alterpieces - quite an eye-rubbing sight!
Must See: Museums (the list only contains the ones we had time to visit!!)
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Museo Nacional de Antropologia in the Chapultepec park (about 20 mts by the Metro from the city centre)
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Museo Nacional de Arte
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Museo Mural Diego Rivera: The museum has only one piece from the master - his Sueno de una Tarde Dominical en la Alameda (Dream of Sunday Afternoon in the Alameda). It is definitely worth going all the way to see just this piece!
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Palacio Nacional: The National Palace contains a series of murals by Diego Rivera outlining his version of the country's history. Note that you need a valid ID to enter the premises.
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Antiguo Colegio de San Ildefonso
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Secrataria de Educacion Publica
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Palacio de Bellas Artes (Fine Arts Theatre) - this one has the most famous ones: Rivera's El Hombre, Controlador de Universo (Man, the Controller of the Universe), Siqueiros' Nueva Democracia (New Democracy) and Orozco's La Katharsis (Catharsis).
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We stayed at the Holiday Inn, Zocalo - extremely well placed to see the beaten path. The view of the Zocalo (main square) from the roof top restaurant is quite amazing!