PayPal might freeze trades with bitcoins. I think it's because they don't allow currency trades over paypal or something along those lines.
It's probably safer and easier to just make a dwolla account. That eliminates the trust issue that comes with private trades too.
I second this paypal in their ToS clearly say that they are not a currency exchanger, a lot of people already got their paypal account suspended because of bitcoin trading.
I do not recommend to anyone to use bitcoin and paypal.
Sigh!!! Ok, didn't want to setup yet another online payment account. But out of curiosity, how would PP know that two people were trading bitcoins and using PP as the payment method?