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I used to have an e-gold account. I used the exchangers listed on their site to fund my account. Just make sure that the issue with e-gold and the authorities has been settled. It would be best to check with the exchanger before sending them any money.
There are various ways of sending money to the exchanger. If you do not live in the USA, the safest choise would be a wire transfer (at least that's what I did).
It should be safe, provided that you keep the safety guides (you know, do not show your password etc) and ALWAYS use the virtual keyboard to enter the password. It will help to have a good anti-spyware softeware running.
As far as paypal vs e-gold. I do not know. In any case, my account has been inactive for quite a while and I may be giving you out-of-date info.
I hope this will help a bit.
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