I second Jack's thoughts on Wagerstreet. They are my favorite book. Very, very fast payouts. Only drawback there is their NBA moneylines are usually posted later in the afternoon than most.
Here are other books that are good that use Paypal:
Sportsinteraction (Great underdog lines but small limits. A must-have in my opinion.)
Grand Central (Usually better fave lines, another long time favorite of mine. Great bonuses, too)
VIP Sports (Great underdog lines, but not as many hockey moneyline options as the previous three)
GameDay (Great bonuses, but like VIP, less hockey options than the first three)
WSEX (Tons of props and good dog lines)
Alladin's Gold (Lacking the hockey options but a great book because their lines are not cookie-cutter)
I use or have used all of these and they all accept Paypal. Click on the Sportsbooks link on the left hand side of this page and check them out.