Actually I think paypal would put a negative balance on your account and maybe even overdraw your bank. I'm not sure but I think this is how they roll. Yes stay away.
They do thus
Create a Free Online Bank Account (Ally is pretty easy)
Attach it to your Paypal
and Limit the Cash in it.
Also do not allow overdraft under any circumstances (you can call customer service for this)
What happens if you try to do the following thing:
1. Buy $x worth of bitcoins from yourself (your account -> your account)
2. Use free online bank account
3. Request a chargeback
(not saying anyone should do this, ever. Just interested in what would happen, theoretically)
Would you actually receive your money back, or would paypal just change their mind and tell you the seller "wins" and not give you anything because they don't want to pay out of their own pocket?
I'm guessing trying to do this is highly fraudelent and you might get f*cked over badly if paypal gets hold of your identity, don't try @ home.
But on the other hand what paypal is doing to bitcoin sellers providing proof of delivery is just... wow...