Biking is the best way to get around Amsterdam if you want to
go further than a comfortable walking distance. There are
lots of bike lanes and cars are bike aware. But biking in
Amsterdam may be different than biking that you're used to,
especially if you come from North America.
The main difference in biking here than in North America is that there are up to 7 different sections of the road, at least for main roads. There is a sidewalk on each side for pedestrians, there are bike lanes in both directions, there are car lanes in both directions, and there is a center section for the trams. For Canal roads, there are only two sections: Pedestrians, and everything else including pedestrians (note that most canal roads are one-way on each side of the canal).
I rode my bike to work, 7km each way. Leo showed me a route the third day I was here. I tried several other routes, but his route won based on minimizing traffic hassles. However, I often took an alternative route on Saturday and Sunday morning, and occasionally I took a water route. Eventually I started taking yet another route home, mainly because it seemed safer (nice bike lanes most of the way).
The rim on my rear wheel cracked after 3 weeks, causing a flat, etc. Fortunately, I was close to home and just walked it back. I took the bike back to the shop, where they repaired it without charge. They have a 2 month guarantee, and they handle any problems during that 2 months without charge. A definite if you're buying a used bike.
Later my rear tire went flat. I patched it, but the patch didn't hold. After a couple of iterations of this, I decided to get the rear tube replaced. Not having the tools to take the wheel off (definitely not a quick-release), I went to Bike-City at Bloemgracht 68-70 mainly because it's close to where I live. The guy fixed it in about 1hr 15min (actually, it only took about 15min to fix; he didn't get to it for an hour), and charged f24.50. He also tighten the chain and the brakes. I found it shifted better afterwards.
On three later visits to Amsterdam, I rented bikes. The first time, I rented at Tweewielercentrum "De Beurs", and the bike was fine. The second time, I rented at MacBike because it was close to my hotel. The agreement you sign with MacBike says "MacBike rents out bicycles in perfect condition." Mine was in perfect condition except for the breaks, the gears, the headlight, and the seat springs, and the seat height/handle bars weren't adjusted for my height. I would have taken it back to get it fixed/adjust, but during their business hours (9-6) I was at work. It may have just that I had an exceptional bad experience with them, but I won't rent from them next time I visit A'dam. The third time, I rented from Yellow Bike. Their bikes are very recognizable: they are painted a strong yellow. Presumably this acts as a theft deterent. I'd say the bike was a bit better in quality than MacBike, but not tremendously better.
Also, most bikes here come without toe clips. Having grown used to them, I found it very hard to ride a bike that didn't have them. In particular, I tended to place the center of my foot on the pedal (instead of the ball of my foot), which made my knee sore. Eventually I would spot the poor foot placement and correct it, but I found that without the toe clip I was constantly replacing my feet on the pedals.
Other bikes are annoying. They're either in your way, or they pass you in a way that makes you feel inadequate. or you pass someone, then come to a red light at which you have to stop, and that guy you passed cruises through in a break in traffic that you had to be moving (as he is) to sneak through.
Pedestrians are dangerous. Most are tourists who don't understand what the bike lanes are about, and don't watch out for bikes, standing with their back to oncoming traffic, oblivious to their peril. Get a bell for your bike and ring it at them. Some of them are so clue-less that they appear to be deaf and not hear the bell. Most will start, and move out of the way. A native Amsterdamer will just snarl at you and walk slowly on his way, slow enough that you have to slow also.
However, there is a slick trick you can sometimes play: Find an Amsterdam cyclist going in the direction you're going, and follow them. Remember, they know when to go and when to stop. True, you need to keep your eyes open since you're a bit behind you, but wow! What an experience! It'll take you half the time to get where you're going, and it's exhilarating at the same time. And how to you pick out a native over a tourist? Go out at rush hour and follow the cyclists in suits.
I got so that I was in about the top 10% of riders (for aggressiveness). However, I found the stress of riding like that too high, so I eased off and rode more leisurely (and safely).