Over the years, I have met many customers to deliver things to them. As long as you meet in a public place, away from your home and in daylight, there really shouldn't be a problem.
I would strongly recommend that you only accept cash upon delivery from anyone who picks up their order in person. Without having online tracking, PayPal will likely not be on your side, should anything go wrong with the transaction.
Karen, I would not charge a handling fee. I would also not restrict the location to just your own city. I would word it more like "If you're in the Dripping Springs area, please contact me to make arrangements to pick up your purchase."