I wouldn't put much weight into a bank employee saying paypal doesn't qualify as a Direct Deposit. A human will see it and know it isn't a real DD. I would like to know if someone has gotten the miles by only doing paypal DD's. My theory is the promo auto sends the miles once a ACH goes through, I'm sure they want this as automated as possible. Of course it is too early to know because I don't think anyone has gotten the miles yet.

Also here is the direct deposit form.