I like paypal for the simplicity but to be honest I find their charges outragous. If you are selling one off items stick to cheques and state in the auction that you will wait till cheque clears before posting. This can put some buyers off though and sometimes its better to pay the paypal charges as it will attract more bidders.
Just dont tell them!!

And on the subject of PayPal, you could always buy something from ebay (high value of course) and when it comes WITHOUT registered post, tell Paypal you NEVER recieved it, and Paypal WILL refund your money, no questions asked!
Well thats what some B'stad did to me, and yes Paypal take it from the person who sold the goods!
**** PayPal!!!!