I think you do need a PayPal account.
Yes, Ebay and Paypal are one company. And Ebay has changed their policies within the past year, that sellers are not allowed to accept moneyorders, cashiers checks, or personal checks. Which leaves one option...Paypal, it is a requirement. There are exceptions in the Ebay Motors section or if you are selling items for local pick up. For more info, type Payment Methods in Ebays Help Page. Hope this helps!