I found a great website to answer all of the questions you have. The Taipei Motor Vehicle Supervision Dept. has a site (in English, too) at:
From what I’ve already read, either you won’t be able to transfer your license (it’s according to what state yours is from) or it’ll be too much trouble to go through.
What I’d suggest is that you take the drivers test. I completed the whole process within an hour.
Their website has an online test for you to practice the exam questions with (Click on “Exam CAI”). BTW–It doesn’t work properly–you won’t be able to score 100 on the test since the random-question programming is screwed up (e.g. you’ll get answers to choose–but no questions). But you’ll be able to see which questions were right (of the ones that you COULD answer). Keep refreshing the page, and you’ll eventually cycle through all of the questions that will be on your test.
You’ll need your passport, ARC card, a couple of passport-size photos, license application (provided there), and local drivers license or international driver license & a copy (if you want a car license).
Hope this helps. Good luck