I do hundreds of transactions a week with Paypal and honestly, I rarely have a problem, and the only time I EVER have a problem is when a buyer doesn't get an item I ship to them. If you can't prove you shipped it with tracking, Paypal will refund their money.
Other than that, Paypal is great. Don't listen to Paypalsucks.com, it's a bunch of people with small problems that they blow out of proportion and exaggerate to make into some big elaborate story.