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[Quasi_Mojo]

If a photo ID (usually doesn't have to be a driver's license) is required to open a checking account, you should be able to get one for your Dad at the "Circuit Court Clerk's Office in your county of residence".

Identification Card (ID)
* An ID card must be obtained at the Circuit Court Clerk's Office in your county of residence.
* An ID card may be obtained for a person age 15 and over.
* Birth Certificate, Social Security Card and proof of residency are required.
* The cost of the ID is $12.00 and valid for four years.
Division of Driver Licensing - KY Driver License/ID Card and General Information

Basic Requirements for opening a checking account:
In addition to the basic contact information like name, address and phone number:
# Social Security Number for each signer
# Driver’s license or state-issued ID number, issue date and expiration date for each signer
# Account and routing numbers from a current account for transferring money into this new account

If your Dad has no plans on using PayPal or Fleebay himself, then go ahead and open a checking account in his name. Then attach that checking account to PayPal.
Hopefully, your Dad won't take the money and run. You could probably open the account in both your names.