>Mike, re Paypal: take a very careful look at their Seller Protection Policy (SPP.) Intangible goods (e.g. e-mailed product) are specifically excluded, meaning you have no protection if a buyer decides they want their money back. Also, goods $250 need online Delivery Confirmation and goods >$250 need "signature required" postage as well, or you're not covered. Also check our international coverage: if you're planning to send outside North America and the UK, you're not covered by the SPP.
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>It depends on the sort of customer you're expecting. I don't know how many Paypal claims Rick Strahl has faced- perhaps not very many, bearing in mind his target market of professional developers- but if you're going to take Paypal, you need to know... if in doubt, choose "community" at the Ebay website, navigate to the Paypal Discussion Board and ask the question.

If it were up to me, I would go another route just because PayPal's cut seems to get bigger and bigger all the time.