I have an account set up to pay for stuff via Paypal....is this ok to receive payment for selling stuff as well or do I have to set the account up differently?
Yes you can use the same account. Make sure that you have the email address that you use on Ebay registered under your Paypal account (you can have up to 8) otherwise the two do not talk to each other and you cannot collect the money. You will also have to pay commission to Paypal as well as your selling fees to Ebay.