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If you're the seller and they're paying paypal gift, I can't see how this could go wrong for you, unless they've hijacked an account and the money will get returned to its rightful owner or something?
They send paypal gift money and address to you. You send item. That's it. They have no recourse if you don't send it or if you send a turd. You pay no ebay or paypal fees. They stand to lose more, I think. Maybe I'm wrong?
Edit: Too late, should've refreshed the page.
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Charlie33 just dont do it man. Offer to relist as BuyNow or leave the cash in a black bag, under the third bench, by the green car, and tell them not to look back.
TurtleRecall
Noice
@Charlie33
Someone on eBay asked me to sell them my item off eBay and for them to pay via paypal, their account is new and they only have 1 feedback... Would I be at risk if they send the money as gift?