You have to use a third party "broker" or find someone to trade your e-gold for paypal. Here are some things i found on another site.
*** Can I convert e-gold into Paypal or cash?
Not directly.
When I need Paypal, I trade with someone who wants e-gold and have Paypal. The going rate is that you usually get a slight premium (e-gold is generally worth a bit more to people who want it)
On the e-gold web site there are listed third-party companies who are willing to do exchange. But there's usually a fee involved and you need to have a large amount of e-gold before you can do an exchange (so if you want to exchange $1 e-gold you will be hard pressed to find a company to help you!)
here are a few sites that exchange e-gold for paypal
Just wanted to let you know i di the gold trader site right after i posted this to you. I transfered $3.33 from egold to paypal and they sent me the paypal within a few hours!!
Thanks - I'll try them tomorrow. I'm too tired now (and frustrated with this snow). Of course DH left around 12 (before it started sticking) so I had to go out and shovel. He won't be back until Thursday (after it's melted)