Is this bike rental system still working well? I have read conflicting news stories and blogs.
Yes, I am living in Paris at the moment and the system seems to be working very well. The only problem is if you get a bike and ride it to another stop and that stop is full of bikes...so you have to go to another one. But they have maps of where the velib spots are and they are easy to find because they are always close to the metro.
It is difficult for USA visitors to use the Velib, as i've read the system only accepts 'chip/pin' type credit cards, and perhaps American Express. Be advised it places a hold on your card for the value of the bike for x days.