I've accepted PayPal payments for overseas orders for 2 years now and never have had any trouble. I've also used PayPal to buy things online now for many years - again no trouble. Fast, efficient, hassle-free - but then I use a Mac, I don't know if that makes any difference. Maybe I've just been lucky.

I always access directly through the browser (typing in the name), and never use a link in an e-mail. I delete all e-Mails from PayPal or PayPal look-a-likes.

There is an e-banking alternative for European bank transactions which is being introduced this year: SEPA (Single European Payments A....). So if your bank participates (most major banks will be) you can send and received Euros now at a fraction of the price (CHF 0.30 if I read correctly) and the transaction time has been significantly reduced.