PayPal and or Google checkout are the usual choices because there is no monthly fee only a % of the transaction.
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Yes, go with paypal. I have looked at tons of merchant accounts and many of them have hidden fees and cancellation fees that you don`t find out about until later. I love paypal because you can sign up in a way that makes it transparent to your customer (they won`t know you are using paypal) and you can cancel any time. The fees might be a little higher PER transaction, but you aren`t paying all the statement fees, etc. that other accounts have. And, you can cancel at any time.
I`ve used paypal for 6 years and never had a problem with it. And, they have recently added new features for tracking your sales that I like.
The other one that I liked and found to be very easy and honest to work with was Authorize.net. I never had a problem with them and everything was clearly explained to me before I signed anything.