In addition, if you use the "list new item" template on eBay, it automatically inserts the "Paypal required" box, which you must uncheck.

If you use Turbo Lister (offered by eBay - it allows you to work off-line and then upload your lsitings to eBay), you can set your own payment requirements. Turbo Lister does not automatically check "PayPal unless you choose that option.

As noted, though, new seller accounts are bound by a new set of rules.