@forge - Yeah. But if it goes south on Escrow.com you don't lose your domain. As you said.
Yes you can lose your domain by using Escrow.com.
I wont go into it here but there is defiantly a way to steal ones domain by using Escrow.com
I have used PP for years and I haven't been screwed yet (yet being the key word)
The one thing I always do is, I never allow the buyer to just deposit money in my PP account with my email address.
I Always create a PP invoice with as much as their info as I can get.
I send that to them listing it as a Domain Purchase with the domain name listed.
Now, this doesn't mean they cant steal my domain but the more official it appears the better chance of them not trying to scam me.
I always take a snapshot of the Whois the moment they transfer the domain, even when I use Escrow.com.
After the transfer is complete I always send an email to the buyer thanking them and telling them their transfer is now complete and I attach a snapshot of the whois showing their info.
By sending them an invoice they at least acknowledge they were billed and they willingly paid.
This doesn't necessarily guarantee me that I wont get scammed but what it does it create a virtual paper trail and then I can try to go after them or at the very least trash them on the internet (forums, bogs) so the next domainer hopefully wont get screwed be them.
Now, when using Escrow.com I always approve the transfer of the domain during Escrow.com's business hours, and the moment the transfer goes through I take my snapshot of the whois and then I call Escrow.com immediately and I get them to also take a snapshot and then they start the clock at that moment.
I always choose 1 day inspection period.
I also recommenced never letting the buyer start the Escrow process. otherwise they may pick a long inspection period like 15 days. Always start the escrow process yourself.