Hiya folks!

I've been mulling over the concept of opening myself up for commissions for some time now. It would present a challenge for me, a way to stretch my artistic boundaries, and hopefully make someone happy in the process. It would also be a way for me to earn a little cash for some side projects of mine (namely some small decorating upgrades to my house!). So my questions for you guys is this:

1) What is a reasonable price to charge for commissions?
2) How would I go about setting one up? (I have a PayPal account, for whatever that's worth)
3) What's a good method of doing commissions in the first place?
4) Blah?

I dunno. I feel really damn pretentious offering commissions in the first place (would anyone actually pay to own some of my artwork??) but it's an idea I want to explore. Thoughts/suggestions/ideas?