You cant transfer the money from Egold to PayPal. You need some trusted Payment Transfer services. There are many websites. You can google it and get it.
No trusted "payment transfer service" exists because it´s forbidden by PP´s TOS to exchange into any other ecurrency. The best you can do is to buy some services or similar for the e-gold, so you probably will make the least loss. If you sell to any exchanger (which will be hard to find) you will have to pay REALLY BIG fees because e-gold looses it´s value every day.
Try Move-Funds.com . I have heard that you will have to pay 10$ for every 10.3$. I mean, they will exchange in such a way that you will get 3% more in your PayPal account when you give away your e-gold funds.