Oh yes, it's a VPS so you can run whatever you want and use whatever resources you want within the limitations of the server. It has the illusion of being your own dedicated server that you can install anything you want on, but it is actually virtualized and you share resources with others. It's looking like bandwidth is probably going to be the limitation I hit first on my current plan.
And I assume you mean paying for Linode using PayPal, not accepting PayPal on a Linode-hosted server, right? Because I do the latter. Assuming the former, did you see this?
What forms of payment do you accept?
We accept Visa, MasterCard, American Express, and Discover. We do not accept PayPal, however the PayPal credit card is branded by Mastercard and is accepted. We have month-to-month, 12-month, and 24-month terms available.