I discuss melatonin's effects on sleep & its safety; I segue into the general benefits of sleep and the severely disrupted sleep of the modern Western world, the cost of melatonin use and the benefit (eg. enforcing regular bedtimes), followed by a basic cost-benefit analysis of melatonin concluding that the net profit is large enough to be worth giving it a try barring unusual conditions or very pessimistic safety estimates.
Full essay: http://www.gwern.net/Melatonin
I have delayed-phase sleep disorder - I would say I "suffer" from it but it's really only a problem when a 3-10 sleep schedule is out of the question (as it is now, since I currently work 9-5). It's simply impossible for me to fall asleep before 2 or 3 am unless I am extremely tired. In addition, I'm a light sleeper, and have never been able to sleep while traveling or, in fact, whenever I'm not truly horizontal. I took melatonin to help with this for a couple years (at a recommended 0.3 mg dose), and it worked extremely well. However, I experienced unusually vivid dreams, and would often wake up feeling groggy. Ultimately, I switched to taking 50 mg 5-HTP an hour or two before bed. The result is that I fall sleep as easily as with melatonin, but wake up feeling far more refreshed. I usually clock 7 hours of sleep a night now, and have brighter and more productive days.
The best sleep aid I've ever used isn't a legal one, though. Luckily, it's widely available here in Canada...
as 5-HTP is metabolized to melatonin, i wonder how much of the effect comes from melatonin itself.