Bowhunter,
Some thoughts on PayPal. As a buyer, I've stopped using it, although I wish there was a similar alternative. My wife and I opened an account, and attached it to an old bank account we generally keep almost no money in. Our thought was that if there were any problems, at least there would only be a few dollars in the account. Our intention was to pay for everything with a credit card anyway. Well, no matter what we did, we couldn't get PayPal to stop treating every transaction as a debit card sale. Kept overdrawing the account, and having to pay "bad check" fees. Almost impossible to explain to the bank why it kept happening, and impossible to get any feedback from PayPal.
As I went online searching for help, I discovered a number of problems with PayPal from the seller's end as well. PayPal opperates essentially as an unregulated bank. There just aren't any rules yet dealing with what they do. I read a number of reports of vendors who were notified that their accounts were "frozen" because of a customer complaint. They were then unable to access what, in some cases, was a sizeable amount of their cash in those accounts. Some reported months of effort trying to free up their funds. So if you're planning to be a vendor who uses PayPal, I'd make sure you sweep the account into a non PayPal account often to avoid this problem.
Goodness knows I hate going down to the post office to buy postal money orders. I wish there was some better alternative to PayPal. Unfortunately, they're just about the only game in town. Hardly anybody accepts any of the other services.