Thanks Apple. I really waited for this moment. I almost felt banned from being able to use the iTunes Music Store because I don't have a credit card.

:)

How long until the rest of the world starts whining about how Apple hates and neglects them?

I tried signing up for it, but PayPal refused to let me proceed without entering a credit card. I've had a verified bank account on record for ages, but have no credit/debit card at this time.

Anyone else have problems choosing PP as their iTunes payment method?

Guess I'll stick with gift cards/certificates for the time being.

Paypal will NOT even accept a current account as active unless you give them a credit card as well. I have had an active account for several years. recently my credit card of record expired and I decided that, since there is a lot of money in the account already, I would just forget about it. WRONG. They will not let me access the funds already there without a credit card. I cannot even withdraw MY money into my bank account. DON'T USE PAYPAL.

It's not about CC's...as some of you have guessed.
Paypal requires a credit card too.

It's about children having unlimited ability to spend.
Debit cards and 'gift cards' have preset spending limits...for some odd reason parents have allowed children to have paypal accounts, and those accounts are backed by real credit cards.

Now children can make the decision to borrow money to pay for the music habit.

I don't blame apple, but parents...get wise to this!

So can i now cheat the system and buy songs from the American ITMS even though i'm based in the UK?

I wonder how long this will last until PayPal has screwed Apple like they've screwed every other company I've known that accepted them.

the same PayPal that screwed hundreds of its customers and is now the subject of a huge class-action lawsuit?

I would think Apple would choose it's partners more wisely. I fear this is gonna turn againts them. If a problem happens, knowing PayPal's reputation for "chargeback", who is gonna be stuck in the middle of a court conflict?

Note: I used PayPal only once and was satisfied with the service, so it's not a personal vendetta or hate agains them. I'm just surprised that Apple wants to associate iteself with a company known to scam its customer and have horrible service. Especially if this company deals with financial transactions!

To find more info, just search Google for something like "paypal fraud lawsuit" and you will find many sites dedicated to warn people against PayPal. Here's a few links:

http://www.paypalsucks.com/
http://www.aboutpaypal.org/paypal_lawsuit
http://www.paypalsucks.com/credit-card-waiver.shtml
http://paypalsucks.com/faqs.shtml

bummer i had to make a new account, but i'll take it!

" the same PayPal that screwed hundreds of its customers and is now the subject of a huge class-action lawsuit? "

I have successfully used Paypal for years...almost since day one. NEVER had a problem.