Stop. Do not send any money or that's the last you will see of it.
There are several post about being scammed by this site on the web. In addition, a 'whois' search shows that they have only been registered for about 2 months. Also there is a registration blacklist report on the site.
Another huge red flag is that they use a free email service (yahoo). A legit service does not use free email services such as yahoo, hotmail, etc...
Also the fact that they want wire transfer is a total giveaway. It's also quite obvious that they were lying about taking paypal since they did not really have an account, even though listing paypal on their site. Alot of scam site use paypal logos and list paypal as a payment method to help lure buyers into a false sence of well being and trust. If they would already have had a paypal account your payment would have went through on the first try. What they did was agree to accept a paypal payment after you insisted and then tried to run and open an account, but you had already tried to make a payment to a non existant account...
This deal has SCAM written all over it..