Yes, I plan on selling the codes. No, there will never be any PayPal involved.
To start I am planning on using Google Checkout / Wallet and BitPay. Eventually I also want to add Stripe, Dwolla (depending), and Moneybookers / Skrill.
Yes, I want all code sales to be automated and protected. Though I am sure I have other issues to worry about if someone gains access to my database, having them secured will make me feel better.
I am currently doing this at
https://www.lgcards.com/bitcoin