Paypal is tied so closely to the Gov't. There are horor stories of people who sell stuff such as lights, growing supplies, where Paypal freezes funds! They hold them for upto 6 months in their "Investigations".

If your sending your 'friend' money as a 'gift', then i'd say fine. If your doing transactions that can lead back to an illegal or even questionable activity... money order it, or do what 4x5 suggests... prepaid credit card, and stay away from paypal.

In general Paypal is a nazified organization. You either play by their rules, which they can change at any time, or take your chances.