I sent $100 cash to Morpheus to convert into MtGox $, but it never arrived. I mailed it from a public mail box, so it wasn't stolen out of mine.
I can't think of a time that I've ever had first-class mail get lost before.
The lost cash was very unfortunate. I've received cash from several others without incident. The cash from FlyingMoose simply did not show up. I'm not sure what happened. If FlyingMoose still want's to use my service, I'll wave my fee until it covers his loss.
I'm thinking of accepting postal money orders and checks in the mail which is much safer than cash. If the money order or check is lost in the mail, it can't be cashed by anyone else (not without difficulty) and the sender can simply cancel it and get their money back.
The only issue I seem to find with money orders and checks is fakes and bounced checks. Both seem to be easy to avoid by waiting for them to clear before sending bitcoin/Mt. Gox USD.
Are there any other issues I should be worried about? Anyone on this board have experience accepting checks in the mail for hard goods?