Welcome Dave! Thanks for your questions and for being a Bitcoin merchant pioneer! :)
With any "Other" form of payment you must mark the order paid manually once you receive the Other payment. Because this is a manual process, you want to be sure you have been paid via the other service / Bitcoin before you do so. Etsy will charge their fees when the order is marked paid.
To accept Bitcoin you need to decide, first, if you plan to keep the bitcoin you receive to save or use/sell later or if you want to have it automatically converted into USD sent to your business bank account. Automatic conversion means you can avoid BTC/USD exchange rate risk. Which tools I recommend will differ depending on the answer to this question.
You also need to advertise Bitcoin acceptance in your shop policies and, preferably, as a shop announcement. Also inform people that they need to send you a message requesting to pay for this order with Bitcoin or it may cause them delays or never be filled (however you want to word this). Sometimes people will submit an "Other" order without any communication, leaving you to guess as to their intentions.
Depending upon the merchant tools you select, you may need a Bitcoin wallet on your desktop or phone (better). I would, personally, encourage everyone to hold and attempt to use bitcoin themselves as much as possible. After all, the goal with Bitcoin is to "be your own bank". However, I understand many wish to avoid volatility and have it exchanged immediately.
