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Do I need a passport or Visa to enter Mexico from U.S.?
No

Do I need a passport to return to the U.S.?
Begininning January 31, 2008, U.S. residents will require a passport OR any other form of document which proves citizneship or residency.  E.g., U.S. birth certificate.  See: http://www.dhs.gov/xtrvlsec/crossingborders

Can I fly into San Felipe? If so, which airlines?

Unfortunately, not at this time - unless you have your own plane.

Is it a good idea to bring my jetski to sanfelipe for a few days in December? Jetskis are quite the thing, especially in summer when the water is warm (around 90 degrees). If you like cool (60-64 degree) water and occasional wind-blown waves you will be in Paradise in December. If you are in town, then you can launch from the El Cortez Hotel boat ramp or the ramp at the south end of the harbor. Don`t forget to buy Mexican auto insurance that covers the trailer and jetski.

Are U.S. Dollars accepted in San Felipe?
U.S. Dollars are accepted everywhere in San Felipe (except for paying the electricity bills). Merchants are glad to get your dollars.