Jim, we have gotten euros from ATM at FCO in Rome probably 6 times, never any problem and it's the most economical way as well. Make sure you and Jan BOTH bring an ATM card, one time (not Rome) Tom's BofA ATM card didn't work (demagnetized maybe?) so we were happy we had mine.
Also, good idea to call your bank and cc companies to make them aware you're traveling out of the country.

Tim (Ajax), I just noticed that you're from Los Gatos...have kids, S-I-L's (Los Gatos High/UCSB/USC MBA) entire family all from there (inlaws - Susan & Ron Fagin)...we visit often & LOVE that area !!!