America doesn't have many roundabouts because even if you understand how one works, you have to worry about other drivers who don't. But they are a fact of life in Britain. The ultimate roundabout is this one in Swindon that is actually a cluster of roundabouts in one intersection.
The Magic Roundabout in Swindon, England, constructed in 1972, is the most brilliant and at the same time, the most confusing roundabout ever built. The roundabout, named after the popular children's television series by the same name, is located near the County Ground and consists of five mini-roundabouts arranged in a circle. At first sight, it might appear to confuse or amuse new visitors and certainly baffle tourists but once you understand how the roundabout works you will realize how revolutionary the idea is.
Other pictures and diagrams at Amusing Planet may help you parse out what is supposed to happen. Keep in mind that driving on the left side of the road is the correct thing to do in this location. Link -via the Presurfer
(Image credit: Google Earth)
The problem with any intersection whether it is older stop lights, stop signs, or a roundabout is yielding, some people don't know when to yield or who to yield to.
Also are you saying that a roundabout takes less or more space than a signed intersection?