You can only gift money with a Canadian paypal. So if you intend to only use this as a means for virtual trading e.g. Neopets then yes it will work, however if you wish to use this money for any commercial website like eBay it's gonna get limited and then you're screwed. Also, if you get any disputes, log in through an American IP, or start making large sums of money it's going to get limited real fast.
Just make a legit paypal with legit credentials, it's easier in the long run.