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I've used paypal for ages, no problems.. as Rob said, use a dedicated account for online transactions (ebay included), or just link it to your C/C and not your bank account.
I think the doom and gloom horror stories are a bit over the top. Like janos, there'll be bad experiences to read with whatever form of payment you choose, but you just don't get to read the 99.99% of good news stories.
Rod, I've set my paypal account up as a premier account, so I can accept incoming C/C payments for either donations to the site, or whenever I should choose to sell anything. Yes you might forfeit 3%, but most sellers add that ontop of whatever item they're selling if the buyer pays using paypal.
I've used paypal to pay for many items bought over ebay or other 2nd hand astro goods. It's been perfect for me every time, not a single hassle.
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