I've never had a problem with PayPal - despite the horror stories out there. Have shippied to the UK, US, Germany and Russia (yes, Russia).
One word of caution: Just because you withdraw funds to your bank account, and wait until they appear, doesn't protect you from chargebacks. eBay will just try to withdraw the funds back from your bank account in the event of a chargeback...or failing that, it will hit every credit card you have on file etc. Of course you can always challenge the debit with your credit card company...but that's a whole other story (has anyone read every piece of the small print you're shown when you sign up for PayPal? I suspect they've covered that base somewhere in there). I've heard the only real way to protect yourself from a chargeback is to shut your account down...but even that takes a number of business days to complete, so you could always be stung in the meantime and be left without the money and without a PayPal account either (which would make dealing with PayPal a lot more difficult I would imagine).
Like I said, I've never had any problems with PayPal - mostly because I'm careful with who I deal with (lots of positive feedback on eBay? long time user of the forum? I google street view their address and make sure it exists, I google their name, I see if they're listed in the phone book, etc.) but my gut instinct is that it's just a matter of time. The buyer has a lot of protection - especially if they have paid with a credit card - the seller much less so.
eBay tip: It's important that the buyer leaves positive feedback - once they've done that it's much harder for them to initiate a chargeback. That said, if they don't there's not a huge deal you can do. I'm still waiting on 4 feedbacks for some high value items, until they appear I'm a little nervous.
eBay tip: Make sure you allow returns - even if it's just the minimum 3 day term. Once the buyer accepts delivery (always get proof of delivery) it again makes a chargeback that much more difficult if you've given them the opportunity to return the goods no questions asked, and they pass on it.