I wish to add logout link into the header, but I'm having problems:

1. Adding <a href="/wp-login.php?action=logout">Logout</a> redirects to a page asking to confirm logging out (undesired)
2. Adding the usual <a href="<?php echo wp_logout_url(); ?>">Logout</a> into header subtemplate doesn't output the actual logout link

I know that I could create a widget and use that to output the logout link, but that feels a bit like joining the marines just to learn to fold the underwear.

Any idea how to create a simple logout link? Is it possible to create an extra php file and call it from a subtemplate or something like that? If so, what would be the steps?

I don't remember where I got this code snippet from, but it adds a logout menu item to the end of the menu. What I like about it is that the logout link becomes part of the menu, instead of a separate link.

<?php
// Add logout menu item
function add_login_logout_link($items, $args)
{
  $newitems = $items;
  $newitems .= '<li><a title="Logout" href="'. wp_logout_url('index.php') .'">Logout</a></li>';
 
  return $newitems;
}
add_filter('wp_nav_menu_items', 'add_login_logout_link', 10, 2);
?>

I add it using the Header and Footer plugin, which allows you to add PHP code or Javascript to all pages.

Thanks, I saw that in one of the discussion on Wordpress.org too, but sadly the design requirements are for a logout link outside the menu (essentially in a custom created div that site at the very top of the site).

Could this be done by calling an external php file somehow?

Try this, add the following to the end of function.php

//Logout Shortcode
function logout_func ($atts, $content = null) {
	extract(shortcode_atts(array(
		'linktext' => 'Log Out',
		), $atts));
	$logoutlink = wp_logout_url( home_url() );
	 return '<a href="' . $logoutlink . '" title="Logout">'. $linktext .'</a>';
}
add_shortcode( 'wplogout', 'logout_func' );
?>

go to MTO->Sub Templates->Header.php and add the folowing where ever you want

<?php echo do_shortcode('[wplogout linktext="Logout"]'); ?>

Thank you JD, you da man, as always.
Side note, sent you a PM regarding something unrelated a few days ago =)