I guess my experience with PayPal is like many others... as a buyer or a donation giver, I haven't run into any problems with PayPal. The purchases that I make through PayPal are small (from $10-50) since I don't want a whole lot to come out of my bank account ;-)
On the otherhand, I have heard that those who receive money via PayPal have had problems (ranging from small quirks to insane fees). One of the vendors that I recently made a purchase through (using PayPal) resides in Australia... the problem they have is the high conversion fees and other fees related to the transaction, plus the silly minimum limit to withdraw money (it's a problem for them since the items aren't very expensive).
Just wanted to post my experiences with PayPal and some of problems that I have heard.
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