Not all taxis are licensed: many car owners just put a TAXI sign on their window and operate as a taxi. Many taxis are unsafe and you should be especially careful when choosing which taxi to get into. If you get a taxi arranged by your hotel, you will pay a hire fare for the ride but you will be absolutely safe and the car will be in good condition. If you do not speak Spanish, the hotel will help you with making sure you get to the proper destination and they will arrange the fare for you.
If you have to catch a taxi on the street, be sure you get in a cab with a registration number displayed on the car door. Make sure you establish the fare before entering in the cab. In Spanish say "Cuanto hasta (destination)" This means, how much to (destination). It is best to sit in the back right behind the driver and never allow another passenger that you do not know to get into the taxi with you.
Do not ride in one of the little TICOS, as they are very unsafe mechanically and they are especially unsafe in an accident.
Cusco has a great nightlife. You can have a lot of fun out at the bars and discotecas, but be careful with the number of drinks you consume because the alcohol will affect you more at high altitude. If you are a single traveller, make sure that you do not accept drinks from strangers and be careful with the "brecheros/brecheras". Brecheros/brecheras are people who are hunting tourists and will seem charming at first but the motive is to rob you if they get you alone.
If you use common sense, you will not have any problems. However, if any problems arise, go to the National Tourism Police at Calle Saphi. The staff speak English and they are trained to help foreigners. Another option is the Tourist Protection Bureau in the Plaza de Armas.
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