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Mathew
I do PayPerPost too (only I sold my soul for a lot more than $2. Heheh). But I always disclosed where I was taking money from. As long as you do too I don't have a problem with it.
But, this isn't really about credibility. The reason I'd be hiring PayPerPost is to get a great Google PageRank.
DnW
Beyond demonstrating your quality, it highlights that the question is a personal one for each blogger to resolve with themself and their audience, not one that is PPP's to dictate.
The blogosphere is a world of many channels, not one big channel. Just as cable TV or ham radio provide a ton of channels, with each conveying its own message/content/ethics, every blogger is a media channel that needs to make decisions that work for its authors, advertisers and audiences.
Keep up the great blogging!
I am seeing at least the dawn of understanding among those who were so quick to call us whores -- that's a good thing.
As time goes on and the integrity of the system shows itself to be valid, I think the buzz will turn from positive to negative.
I do think that the more PPPosties who disclose, the better. I see that as nothing but good for everyone.
DnW