@macebay, search in the forums here for the RBC option for paypal - it's the only canadian-based usd bank account that seems to work. There is a well-written writeup about it. I haven't tried it though.
None of my banks work with their US accounts - have tried CI BC, Caisse pop, Laur Bank, Scot ia. I don't care for RBC and their antics towards me in the past. I got HSBC CDN accounts going - mayeb add some US and see that way.
I have 8 RBC (florida based) US accounts, all opened from Canada. It is a a real US bank, so PayPal accept them no problem for US accounts or Canadian accounts to with draw US funds.
You cannot open them in branch, but just call up RBC USA and you apply on the telephone.
FYI. They will ask for a signature card to be signed before they will open the account. Ask them to fax it as when they mail it it takes weeks to arrive
RBC US $ will work. But there is a particular way to set up the bank account with paypal. You can search th forums about this (How to add a RBC US$ account to Canadian Paypal).