are there any trusted places that exchange btc to usd paypal?
Because you are looking to cash out to PayPal, you would be the party taking the risk of chargeback. There are willing buyers on the #bitcoin-otc marketplace -- some have established trust on the OTC Web of Trust (WoT)
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http://bitcoin-otc.com/vieworderbook.php?type=BUY¬es=paypal -
http://en.bitcoin.it/wiki/Secure_Trading#Use_Bitcoin-OTC -
http://wiki.bitcoin-otc.com/wiki/Using_bitcoin-otc#Risk_of_fraudAlso, since PayPal does not allow PayPal to be used for purchase of Bitcoins (per their User Agreement), you could end up with your account frozen after receiving the funds (though PayPal continues to be used for trades by many each day without PayPal taking any action.)
There is also an exchange that claims to do PayPal cashout:
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http://en.bitcoin.it/wiki/WM-CenterIf you are simply looking for the ability to spend the funds, simlar to how you can with PayPal using a PayPal debit card, you might wish to consider purchasing a prepaid card with Bitcoins. There are a number of cashout virtual debit cards for use online, or there is at least one exchange that will mail out the prepaid card:
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http://bitcointalk.org/index.php?topic=6223.msg91179#msg91179