I'm really excited about this! Any new revenue streams make me happy. :D
Digby - I hear your pain. I've also had an horrific experience with Paypal in the past, which resulted on me serving legal papers on them. Fortunately, that was the kick up the proverbial that they needed and I finally got someone on the 'phone willing to sort things out. I avoided them for years afterwards, but eventually had to bite the bullet and use them for American transactions.
These days I remove any funds the instant that they go into Paypal and I keep records on everything to do with them. They've not messed me around since, but I'm utterly wary and distrustful of them. My usual advice to people is to deal with Paypal like you might deal with the Mafia, and you'll at least have some come-back, if they turn dodgy on you. In the meanwhile, I'm cautiously using them again due to no choice in the matter.
And if they do cause problems, then sent me a message. I still have that whole portfolio of lawyer and CA procedures. I can save you time.