Is it true that Paypal banned Bitcoins, while Google Checkout did not (yet)? Paypal claimed they were not allowed to sell Bitcoins, while currently it seems Google Checkout is a viable option.

So ... what's the story on this?  Is this true, and if so does anyone know why?
I can't speak for why Google Checkout seems to have no problem, it may simply be that they are unaware of Bitcoin as of yet. Edit: A Google Checkout employee has replied that they explicitly allow virtual currencies - at least for the time being. PayPal, on the other hand explicitly bans "the sale of traveler’s checks or money orders, currency exchanges or check cashing" in section 3(f) their acceptable use policy.