In what way did it fail?  I didn't see anything unusual in the server logs.  Did you get the "Please come back later" message?

If you are using verified accounts you might want to also use paypal mass pay. Its a bit cheaper than standard paypal transactions as well as less prone to rorting. This is because its not reliant on credit cards. It uses the money already in your account.

The problem is the credit card companies.

One thing you might run into is paypal sending you a threatening letter about trademark violation in that you are a payment processor and you have "Pal" in your name. Especially since you are using paypal to process your transactions - they could say you might give the impression Paypal condones the use of their trademarks by third parties.
There is a reason there is not a proliferation of "Pal" sites out there accepting payment. These companies are pretty vicious in protecting their name recognition. They have to take action to protect their shareholders.

Might be easier to change your name now then later on when you are established.

Im not saying I support the existence of these things .

It works for me with Arora 0.10.1 and QT 4.6.0 on OS X 10.6.  I don't have access to a Debian machine with X, so I can't test it further than that.  Maybe try with Firefox or Chrome, which should be available on Linux.

I've had a few more successful orders come through, so it appears not to be a problem generally.

The word "international" is not a synonym for non-USA. International means cross-border.

A payment can be international, but an account cannot be. For example, when a US American buys a bitcoin from a Chilean, the transaction is international but that does not make the US American's account international.

US Americans are the only people who make this mistake, and frankly, it's only one of the myriad ways they make themselves look stupid. So, in the interest of protecting your image, I suggest you correct the terminology on your site.

More important than that, I don't expect you will be able to succeed in this endeavor. Unfortunately soft money spoils hard money and the internet reaches out to millions of immoral people who relish a chance to steal. Paypal account verification will not protect you from chargeback liars and phished accounts. Observe what happened to Mt Gox in November.

You might be new to currency exchange and unfamiliar with the risks. Aside form being robbed by liars or having your funds frozen by Paypal for month or years, other dangers await your being noticed.

I suggest you look into the cases of the US based digital currency exchangers who have been defrauded out of their business, robbed by the owners of the US government, accused and convicted on trumped up charges, in prison, in hiding, or in exile.

The banksters stole the US government and now direct the many federal police agencies. They strenuously resist privately issued money because it spoils their carefully crafted illusion of monopoly. They use the tacit agreement created by their target's use of their property, the fiat money, as legal basis for directing the pwnd police against their rivals, no matter how small they might be. Paypal is not a digital currency, it is a payment processor carrying the property of the issuing governments. Paypal is therefore under the thumb of those who defrauded the citizens out of their democracies.

Currently the best ways to get into Bitcoin are to either trade product or service in the market, or to trade fiat for Liberty Reserve to take to Mt Gox. Forget using soft fiat, such as credit cards or Paypal. Use only non-reversible vectors for transmission of fiat.

mndrix, kudos to you, man!

Discouragement and failure are two of the surest stepping stones to success. - Dale Carnegie

I have to agree with nanaimogold. Accepting PayPal for Bitcoin is a very bad idea.

It is just a matter of time before you are scammed into oblivion.

I wish I had better news for you, but I've seen it happen way too many times.

The Madhatter

Just putting a quick testimonial out there - worked fine for the transaction I made.  Hoping it doesn't get hit by scammers, would be a shame to lose such an easy-to-use exchange. 

It's nice to see someone step up and run an experiment like this.  Regardless of whether or not it ultimately succeeds, I believe it will provide valuable information.   Others will be able to learn from the inevitable bureaucratic and fraudster attacks.   

It will also be very interesting to see what if any legal precedents are set with regards to paypal-to-bitcoin businesses meeting the legal definition of a money handling service.   Will bitcoin be classified as "money" or "currency" or whatever the feds need to call it so they now have an excuse neuter the threat with regulation?