The link in the story is incorrect, try this one instead http://news.cnet.com/news/0-1007-200-7744121.html.
My DSL ISP has just recently decided to: a) Increase monthly rates b) Reduce my connection speed (actually, Rhythms went out and the company they switched me to is much slower than what I had, but the price still went up!) c) Put an arbitrary speed cap of 128 kbps per user on the news-server and a 20 Mbps total cap on the news-server, so if lots of people are accessing it simultaneously it is unbelievably slow. Then, on top of this, they sent me an e-mail about a new promotion where in I should try and convince my friends and family to sign up with them. I honestly believe it's a ploy to try and increase profits before the end of the year so they can maximize their bonus potential.
If you have used PayPal recently, you'll find that they prefer you transfer money from your bank account rather than use your credit card, as there isn't as much legally you can do for a bank transfer, as opposed to the well known protection you get for using a credit card.
If the person requests a check, then PayPal has a valid address where they can find the person, plus the person has to sign the check to cash it, so it's much more difficult for them to dispute ever receiving the money.
If you are truly concerned about this, use one of the escrow services to help protect you, or make sure you use a credit card (and not a debit card!) to pay for the item.
This isn't new
I've seen PCs like this COMDEX for the past 3 or 4 years. They're neat, and reasonably priced, but they are not brand new.