It looks like the brouhaha that PayPal made, concerning certain types of fiction being sold, is resolved. Following is a post from the Smashwords blog, which addresses this:
In a victory for free speech, PayPal today announced plans to revise their content policies to allow Smashwords writers full freedom to publish and sell legal ebooks.
I met with PayPal at their offices yesterday in San Jose. They outlined their proposed policy changes for me. I was impressed.
This is a victory for all writers and readers. It removes credit card companies, banks and payment processors from the business of censoring legal fiction. It creates a new precedent that should allow other payment processors who have previously discriminated against legal fiction to relax their policies.