[mschuster91]

LocalBitcoins and non-US-based bitcoin exchanges (funding via e.g. Western Union) for the cash-in.

The problem remains the cash-out, but for smaller quantities one can use Localbitcoins again.

[dagw]

The buy sell spread on LocalBitcoins seems to be in the region of $150-200/bitcoin for cash deals. That doesn't seem too attractive for using bitcoin as an alternative to a checking account.