I decided to go googling because I keep running into random places online that still don't take Paypal. Maybe I should spend less time on computer parts sites...
Best Buy takes Paypal online. Not sure if they take it in-store yet or not, but you might be able to call and ask.
Toys R Us takes Paypal. In fact, last year around this time they had an online coupon for $5 off an order of $25 or more. Maybe you can find something like that for this year, too.
Not sure everyone on eBay takes it but I certainly haven't run into anyone who doesn't lately. Being able to accept credit cards through Paypal has really opened up the seller options.
To those who use the Paypal Mastercard - are there any downsides (other than having access to all that money, which is often too tempting for me...)? I've been refusing the offer but now I'm thinking it's not such a bad idea. Waiting 3 - 5 for the money from my acct is a pain.