Just for the record -
https://cms.paypal.com/us/cgi-bin/?c...locale.x=en_US
Read Prohibited Activities, section 2, point (h).
This was updated not too long ago to be even more vague than what was stipulated before but basically the sale of any adult material (displaying nudity) be it direct with consumer or paying out affiliates for the sale of their adult material all falls under the same jurisdiction as far as Paypal is concerned.