Bumping this... People should know.
Sent 0.25 BTC, and still haven't received anything. Its been a few days now, and all of my emails have gone unanswered.
This is a definite SCAM, and you will lose your money. Research a site before you send your money, and be careful. I didn't find this thread until now, I wish I had sooner.
Confirmed ways to get BTC to paypal...
VirWox
BitInstant (when it's back up)
Coin2Pal.info (Sketchy looking site, but I have tried it myself, and it works)
gonna try that one.. been searching for a particular site