A Paypal Offer - Is This Secure?

Photograph everything. Ship the item to be signed for by the buyer only. Ship to the verified paypal address only. Send the buyer the tracking #'s and fully insure the item. Only ship after the funds have posted into your bank account, then withdraw the funds. Always use selling as is in your heading. If for some reason the buyer ships the item back, refuse to sign for it then go to the local post office to open it in front of witnesses, take pics too, to make sure nothing was stripped off of the unit. Best of luck.

Peter, I got a chance to respond to the Paypal dispute. What I said did not seem to matter, even though I had a timeline and was telling the truth. Supposedly my buyer produced documentation to them stating the DAC was broken. I never saw any, even though I asked.
Again, I got the DAC back in good working condition. It was however missing a $200 cable and some inner packing.
I tried to start my own dispute about this but Paypal "declared" case closed.
Fortunately Audiogon took my side in all this and I was able to leave negative feedback. Some consolation, but a nightmare over all.

Read your Paypal user agreement. You have no recourse to Paypal's decisions, whatever they are. If, for example, you sell to a customer, the customer receives the item then cancels the credit card transaction they used to fund the paypal transaction, paypal will not be able to collect from the customer and they will chargeback the transaction to your account.

Thanks all for your input. Ultimately, I decided not to go with Paypal and convinced the buyer to pay with a wire transfer. Once he realized it was the only way I'd be willing to sell it to him (given the vagueries of the deal and lack of conformity with typical procedures), he stepped forward for wire transfer and all went OK.

Totally agree with Elizabeth.

With PayPal and eBay, they always prefer buyers no matter what the truth may be, unfortunately. You can write a novel about your honest sale but they hardly even take a look at your ad and photos on it. eBay as a third partner is not neutral. PayPal is not safe for sellers, as they can freeze your money whenever they want and you can´t do anything about it. Normal action in business? Hardly, it´s illegal if you ask me. I´ve been selling for ten years on eBay with 100 % score of 800+ transactions and now been freezed by a help a random fraud who has score less than a hundred and very little history. After having read a few horror stories about PayPal fraudulence I don´t trust them at all anymore.
Bank Transfer is the ONLY safe way for sellers. If things get really bad, with PayPal seller can lose all his money + his items and nothing can help it. So seller loses EVERYTHING. I wonder who cares for sellers business anymore. Customer is always right is a myth. Actually this is the biggest problem with doing normal business today.