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Hey,

Anyone know of any free invoicing software, which will allow me to keep track of clients and that offers PayPal integration?

Many thanks,
Hapatio
Free ones. Yes a few. Webbased yes a few. Paypal? Errr.....
Im totally new to this, have I asked for something which is hard to do? I thought you could generate a PayPal url so they can pay automatically straight to me?
Umm what do want to use it for exactly?

There a lot of things that will work but they are made for specific things (shopping carts, web hosting, ...).
Oh you mean like a payment system i thought you meant something like quickbooks.
Okay, it's time for my two cents - I know of three really good pieces of software, and I'm sure you'll be happy with any of them:-

https://secure.freshbooks.com/pricing.php
http://invoicemachine.com/home
http://www.blinksale.com/

They all offer PayPal integration, and seem to be able to generate some really nice high quality invoices. Best of luck!
You could buy cheap invoice software on CodeCanyon. I've bought from Envato before and they are fantastic.
I found these two but there are a few more. The first one seems to be the best though. Try out their Live Demos if you want.

http://codecanyon.net/item/ultimate-clie...ager/47626
http://codecanyon.net/item/client-works/46833
PayPal has it's own Invoicing iirc, though I've never used it and don't know how well it functions.
If you want an online one...I suggest BambooInvoice (http://bambooinvoice.org/) I've used it, and I like it very much.