I think that ETF's are a good idea overall and that iShares are a good (and only, at the moment, in terms of listed ETF's) vehicle for diversification, but I am concerned that if I buy I won't be able to sell easily.

The iShares website addresses the lquidity issue:

Does this mean that even if there are no buyers out there in the public, then Barclays or their "Authorised Participants (APs)" will buy the share for the market price?

Also, can anyone give me a bottom line rundown on what the tax rules are for overseas shares/ETF's. I know there are no franking credits. At what rate are capital gains or dividends/distributions taxed?

Many thanks.