Hi
From my understanding, you can use PayPal only for physical legal adult goods - eg: DVDs etc that are shipped.
They don't allow membership or downloadable only sites.

I would have thought what you describe comes under the downloadable items clause and would be prohibited. In the past I have written to PayPal and asked - I want to sell this and sell it this way, can I use PayPal.

Mind you I haven't checked or asked since the beginning of the year so it could have changed again