Jeremy Downs is the one to talk to. He's been to the shows and been active in the (adult) community.
Jeremy Downs
[email protected]
Yes, adult websites are supposed to register and pay the $1500. I don't think PayPal's left hand knows what the right hand is doing. I'm sure you can sign up as a non-adult account and process transactions for a period of time, but eventually you'll get "discovered" and have to pay the fees.