Travis, here is some information on their payment policy:
http://pages.ebay.com/help/pay/methods.html

Some key points as I recall them:
¶ in the auction description, the seller can only designate from certain allowable (by eBay) payment methods. None of the methods is better (for the seller) than PayPal. All of the methods are buyer-friendly in that in any dispute the onus is on the seller and the buyer can always do a chargeback via his credit card.
¶ you can't designate any seller-friendly methods like checks and money orders.
¶ if the buyer requests a method like checks, the seller can go a long with that, but the seller can't initially suggest such a method (or mention it in any way).

In a nutshell:
(1) PayPal is great for buyers because the PayPal dispute process favors buyers, and in any event if the buyer is unhappy he can go the credit card chargeback route. Always buy on the internet using credit cards.
(2) sellers should only sell on eBay what you can afford to lose via buyer fraud because it is so easy to do a chargeback or dispute a delivery. That is, the seller must build the occasional expected fraudulent loss into his business plan, that is, treat it as a business expense. This is very important, so I'll say it again with an example. If you sell chips --all about the same value-- you can do all right if occasionally a buyer lies about receiving the chip or he does a chargeback. But don't, one day, decide to put a valuable diamond ring on eBay/PayPal because the buyer fraud in that one case could wipe out all your other small sales.