In my checking account transactions, I recorded transfers from Paypal into my checking acct. Should I record the same transfers when inputting Paypal acct transactions?

You're correct in creating bank transfers, successresources. 

Both transfer transactions would already appear from where the funds came from and to where it would be transferred. 

To verify, you can go to the Accounting page then Chart of Accounts. Click the View Register link of your checking account and then the PayPal account.

This will show a decrease balance of your PayPal account and an increase balance in your checking account. 

Let me know if you have other concerns about bank transactions.