How can I ship packages under 1 lb. from USA to United Kingdom, with a
tracking number, for under $10.00 USD?  USPS is NOT an option because
their Global Priority is their only service, which the tracking # does
NOT work internationally.  I have also contacted a DHL representative,
who assured me it would be impossible to ship for that low of a price
(not sure if he was giving me accurate information).  My items are
very light in weight, usually will be under 0.5 lbs., and I cannot
afford to charge shipping more then $10.00 USD per order.  I don't
have time to contact shipping companies, etc. so I am posting this
question for somebody who wants to do this for me and find a company
that can make this happen.  My shipping volume for international
shipments is about 600 packages monthly.

You will find your best deeal at the US Post Office. However you won't
be able to track it once it hits another country.

If you are shipping to Europe this is not a big deal the mail really
does get through 99.9% of the time. Check wiht the Post office to see
your options. Wouldn't it be cheaper to go with the post office and
get a low rate and take a chance tha on a rare occasion your
package/shipment gets lost? Financiall you are better off loosing a
shipment and having low delivery costs on all your other shipments
that do get through. In other words figure in a loss or two, and go
with the lower rate from the post office. As you are finding out,
shipping outside the USA or Canada is not cheap, when you look at
freight companies, UPS/DHL/Bax Global etc., there is no low cost
answer for you.

Yes, I know.  This was what I thought for the past 4 years and it was
working out just great.  However, the 0.01% lost packages have reached
nearly 20% of the packages I sent out, within the past 3 months. 
Seems as if something is not right, and it just keeps getting worse. 
THis mess all started at around 10/05 and has been getting worse day
by day since then.  Till this day 1/30/06, I am averaging about 15-20%
shipped packages even to Europe that NEVER end up getting there,
rediculous figures.  THis is why I am finally looking for an
alternative.

well I live in France. Do you need to have someone who keeps some
inventory here and mails out your product form Europe? Pehaps I can
help you if your volume isn't all that much.

No my volume is very high and it wouldn't be something we could work
out unfortunately. But thanks.

A loss rate of 15%-20% is extremely remarkable.  Have you talked with
USPS about why this could be?  Could there be something about your
packaging that suggests that the items are of "interesting" value,
perhaps your return address?
I note your user name here.  If it is indicative of your business or
only misleadingly so, that could suggest a reason for packages
disappearing.

I should think that USPS would be interested in discussing your
problem since it reflects on their service.  Perhaps they have a way
of localizing the problem if it is within their system.  I am
contemplating a discrete control of the number of items mailed at one
time to the UK through the sorting points, perhaps with dummy
packages.
If that isn't the problem, they should be interested in advising the
UK postal service.