There are quite a few places now doing PayPal->BTC
From what I understand, PayPal is against this, that is why you don't see it being offered anywhere.
I use VirVox, which is a place that doesn't directly trade your USD from PayPal for BTC. Clever!
It's first Paypal>VirVox, then USD>SLL (second life money), SSL>BTC and BTC>BTC wallet. Downside to this is all the transaction fees you have to put up with. Upside is that you get the money there instantly, so you can buy your buttcoins when you want to!