Credit card payments using Paypal on an Indian shopping website

Hi,

I'm planning to build a simple shopping website that sells gifts. The products/gifts would be delivered to Indian addresses, but orders can be made from anywhere in the world. The amount would ultimately be credited to the seller's bank account in India. I've been exploring several payment gateways for accepting credit card payments online. Since mine is a small business, I can't afford to pay the huge setup fees charged by ccavenue, ICICI netseal, etc. I'm considering Paypal's "website payments standard". I have few questions regarding the use of Paypal. I'll be very much grateful to the members if they can answer my queries:

1. Paypal's website payments standard doesn't accept payments in Indian rupees. So, how would my buyers in India pay with their credit cards (whose credit is in Indian rupees)? Suppose I decide to use US Dollars as the accepted currency, will the Indian buyers be paying the US Dollar equivalent of the amount in Indian rupees? Do Indian credit cards allow such a transaction (crediting in dollars)? Similarly, if a buyer from Australia were to visit the site, would his credit card be charged in US Dollars too?

2. I understand that Paypal charges a transaction fees with every purchase and it takes into account domestic/international purchases. But will the buyer's credit card company levy any extra charge for converting Indian/Australian/any currency to US Dollars?

3. I have been reading some bad reviews about Paypal. Can you suggest any other (cheaper) option for a payment gateway in India that accepts payments in Indian Rupees and US Dollars?

Thanks in advance!