The "Town Square in my town features a roundabout, one lane, but the issue is that there's parking spots all around it for the shops on the square. Parking spots which are a nightmare to get out of due to all the cars going 'round...furthermore, stop signs are present at two of the intersecting roads, and said road actually goes straight across at one side.
That being said, there's usually a back-up at about 5:00 PM on weekdays on the west side of the square, but other than that, it seems to work fine. The stop sign on the north side, with cars driving straight across, along with one of those center turn lanes leading to a supermarket, seem to be the source of this problem. As well, cars must yield to the large amount of foot traffic in the crosswalk, as well to any cars occupying the roundabout. Most people around here treat yield signs as stop signs, so that doesn't help much.
http://ci.washington.il.us/pdf/squaremap.pdf
You can see how it works here, in a way. Unfortunately, there's no lane lines, just know that north main goes straight across, south main turns and goes around the square, and Peoria and Walnut have center turn lanes. Speed limit is 20 mi/h, and heavily enforced.
A roundabout isn't that difficult unless the intersection is already awkward anyway. A typical "cross" or "Tee" intersection would work fine. Throwing a kink in the street may make it more difficult to find, and putting a big one in a busy city center, especially with large buildings close by, would be a nightmare...not to mention, how do you put one on a one-way street?