I would accept cash at the time of pick up. I know that giving your address out is a no-no, but when we had a pick up item listed on ebay, we couldn't move it. My DH blew the second motor out of his tracker and I had to get rid of it like it was. It was driving me crazy and I couldn't afford a 3rd motor. Everything went just fine, however, like the most recent posting, things can go wrong. I would suggest witnesses and a bill of sale for tangible property in case you have problems. Make sure you put AS IS on any piece of paper you both sign.
As for paypal in the other post, have you called them directly? I have found that getting a supervisor on the phone and threatening them with the pulling of my business account does wonders. I know that there are other companies who would love to have my money transactions. I, in the years of dealing with ebay and paypal, have had my run-ins with no-so-honest people and talking to humans at paypal has done wonders.
I do agree with the lack of protection for sellers on paypal. It definitely protects the buyers more than the sellers, especially if the buyer esclates the complaint to a claim. The seller has no choice but to give a delivery confirmation number of a delivered package or refund the money. If you give them the DC number of the package you sent, but it never got there, you are still screwed into giving their money back and having the lost merchandise.