I use bitsimple to do that. It's really easy. Just link your paypal and it'll give you an address and when you send your btc to that address it automatically transfers it to USD and puts it in your paypal.
Register on Virwox.com
Deposit your bitcoins into your Virwox account
Exchange your bitcoins for SLL
Then exchange your SLL for USD
Finally withdraw USD to your Paypal
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