We never had problems with PP, although there are plenty of stories about instantly blocked accounts. So be sure to drain your PP account to your banking account regularly.

2Co is just expensive. No problems apart from the kind of weird acceptance policy (you have to mention 2CO as trading party on your website. ..). We are looking into Moneybookers, but i find it hard to decide on the right gateway.

Personally, I think Paypal is the leading payment system. It is used by almost every company today.

Although Paypal is the leading payment processor today, I honestly think that there will come a time that it will be surpassed by another payment processing company. The problem with paypal is that there are countries that are not serviceable by paypal. If paypal will open its doors to almost all countries in the world, then they definitely will hold the lead of payment processors.

Most people I know with PP issues are ones that got phishes. Worldcom I have heard a story like yours below, sorry for that. The one issue I had with PP someones wanted a charge back for services and PP laughed at the guy and told him know since he did indeed use the services and he doesnt get things in life for free.