Here's a short explanation about how to buy Bitcoins with PayPal or with a normal credit card. We will do this through a marketplace called VirWox. Since no exchange currently allows a way around this we are going to have to go through a virtual currency called SLL (Second Life Linden Dollars). This currency is used for one of the biggest virtual worlds today - Second Life.
IMPORTANT: This process hold within it more transaction fees than usual. This may still be a valid solution since the soaring numbers of BTC compensate for this. It's important for you to be aware of the different transaction fees.
VirWox is an exchange of virtual currency, you can buy there Lindens, Bitcoins, and more.
Click on the "not registered yet" to open up a new account as shown here:
Fill out your username and email address. Where it asks for "avatar name" just fill out any name you like it doesn't matter, since you're not going to play Second Life.
Continue filling out all of the personal details and click "register"
Once you clicked "register" you will get an email confirmation with your password. Open the email, copy the password and log back into VirWox.
After clicking the confirmation link it is advised you change you password as shown below since you will be transferring money through this site.
Do not worry about the message saying "Your avatar connection has not been validated yet" - it is irrelevant.
Click on deposit on the left side and choose PayPal Express. Fund the account with how many USD you'd like.
Note: From now on for each transaction you will make there will be a fee - make sure you are aware of the relevant deposit and withdrawal fees.
Go to Exchange->USD/SLL on the left side. You can also go to any other currency you'd like. Buy SLL (which mean Second Life Lindens) . We will later on exchange these SLL to Bitcoins.
Note: If you haven't made a deposit yet you will get the screen shown above requesting you to deposit before you buy SLL.
Once you have SLL in your account, go to the BTC/SLL and buy Bitcoins with your SLL.
Important!!!
Sometimes a manual review will be required by VirWox after this step. This can take up to 48 hours but usually takes around 6 hours.
Choose "Withdraw" on the left side and send the Bitcoins to your wallet.