Getting started with Bitcoin
First, you need a wallet.
A wallet is a place to store your Bitcoin.
An online wallet allows you to access your Bitcoin over the Internet.
An online or desktop wallet allows you to send and receive Bitcoin.
This is the easiest wallet to set up.
All you need is an e-mail adress.
The most popular wallet is from Blockchain.info
More on Bitcoin Wallets
Bitcoin to Paypal
All you need is a prepaid debit card that you can fund with your Bitcoin wallet.
You can get a card from BitPay. No need for photo ID, just your social security number, and $9.95 for the card, and they accept Bitcoin for payment.
At Paypal, link your card to your Paypal account, and you can transfer funds. Linking the card only took me a few seconds.
More on Bitcoin to PayPal
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