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The last time I checked paypal does not allow buying/selling of bitcoin through their service. Everyone switched to Dwolla.com is this still the case with paypal or did they start allowing it after the massive success of Dwolla?
Nothing wrong with accepting bitcoins as payment, it is risky with this weird bitcoin craze hiking the price up so high. But once the bubble pops and the price settles down it should be OK. If you were to accept it you'll just need to cash out right away.
I know a lot of vendors last year were making a killing when people would pay them $50 in bitcoins, the money would stay in escrow until the buyer accepted the product, by the time the vendor received the money it was worth $60-$70. However when the price crashed the opposite would happen in which case they would charge more to help offset it.
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