[Leland Pate]

Thanks for the info guys.

I did some search on check kiting and from what I can tell this is different.
Here's what I found on google.

Check kiting is among the most common, and most dangerous, forms of check fraud foisted upon financial institutions. A kite is a form of shell game using at least two accounts at separate financial institutions. The common practice of allowing depositors to have immediate use of uncollected funds facilitates the scheme. Indeed, Regulation CC mandates early access to deposited funds. In the typical scheme, an NSF check is written by the malefactor on one account and then deposited into an account at another institution. A check drawn on the second account is then used to cover the resulting overdraft on the first account. Taking advantage of the float caused by normal delays in the collection system, the wrongdoer creates fictional balances in each account and uses these balances to obtain cash advances.

I would not be floating anything. I would merely be using paypal to get the "purchase" APR instead of a cash advance APR.
If it's illegal or improper, I wouldn't do it.
Thanks again,