Well, here's the Bad, I suppose.

paypalwarning.com
Consumer Alert: Paypal problems
Template Monster battles Paypal problems

...lots more. Google "paypal problems". :-(

Sorry. Can't offer an alternative. If I were going to do this, I'd set up another checking account somewhere and give that to Paypal. Then I'd transfer money out of the account and into my regular checking account as often as necessary. The fact that Paypal can arbitrarily freeze an account, or take money back scares me.

Edit: Be sure to check out the "Wall of Shame" at www.paypalwarning.com. Just story after story of people getting ripped off.