Dwolla is NOT a solution to the PayPal issue, it is simply another part of  the problem.  Dwolla is responsible for the closing of TradeHill, (the second largest exchange after Mt. Gox) which has now sued Dwolla for revoking hundreds of thousands of dollars from TradeHill's account.  Before TradeHill closed, they refunded all bitcoins to their users, so no TradeHill customers lost anything, but TradeHill lost EVERYTHING because of Dwolla's rescinding their "no chargeback" policy.  Dwolla then modified their website after the fact to allow chargebacks (which they had earlier proudly proclaimed they would never use).

I closed my Dwolla account and will never use them again.  I suggest you do the same.  Dwolla owes their success to Bitcoin, but now they've turned on us and made it far riskier to run an exchange.  You may notice that several exchanges are no longer using Dwolla because of what happened to TradeHill.