Hi, I'm Amanda, the Web Manager of HiFi Flo.
Yes, we had some complaints regarding the PayPal seller verification, so it is now optional.
We are a bit new (just launched April 16th) so people were kind of wary of giving out their CC info ; )
BUT if you do decided to become verified you'll get a nifty "PayPal Verified" icon that displays on all your ads (yup all listings are totally free on HiFi Flo). We also are VeriSign secured so it's a very safe site.
I would be happy to answer any questions anybody has about the site. Just shoot me an email or respond here.