to answer you question seriously (angry look at maddgreek), i don't trust paypal all that much.
i use paypal, because its the common choice for that type of transaction and because most people that i do business with online have paypal accounts. the advantage to paypal is that you don't have to have an actual transaction procession or merchant account set up.
however, paypal can be very weird when it comes to "violations" and they are very strict with their rules. i've heard of many occasions from other people where their accounts were frozen, or transactions declined, or even paypal taking their money. so they seem to be kind of a shady company.
i don't know if this helps you or not, but the bottom line is that paypal is a very good method of payment, but i would never leave a large amount of balance with them, without transfering it to my real bank account and i always watch over my shoulder to make sure they don't fuck with me.
an emerging alternative to paypal is epasseport.com. its becoming quite popular because it deals with adult business, unlike paypal, so all the porn companies are using it now.