Agreed - Neteller (in $) funded from current account. A lot of UK savings accounts won't let you transfer to neteller because the transfer does not actually go to an account in your name (e.g. ING Direct).

You will get a 1.9% charge applied to the exchange rate in both directions, but they use the interbank rate which works out better than most credit cards.

When you set up neteller, do a dummy transfer. You will get a dropdown box which lists the supported accounts