Im opening a site soon that sells instant downloads and i need a good way to accept payments other than paypal

Within the US, you can use Google Checkout.

Direct Credit Card merchants should accept this just fine, just make sure you read through their TOS and contact their support teams to see if they will . A number of them have problems with download sites.

Also, you can try 2checkout.com

WorldPay, 2CO.

Google Checkout
Not for digital content. I am still in the middle of the battle against the chargeback which I have received via Google Checkout.

and my comments will be:
I know that Google Checkout
Payment Guarantee Policy does not currently cover intangible goods, such as services and digital content, but it doesn't mean that the clients of Google Checkout should get the services and digital content for nothing - it seems to me some kind of scam.
the same I emailed to Google Checkout.

What kind of problems do they have with downloaded "products"?

Direct Credit Card merchants should accept this just fine, just make sure you read through their TOS and contact their support teams to see if they will . A number of them have problems with download sites.

Also, you can try 2checkout.com

I would agree google check out, direct credit card acceptance through your own merchant account. Pay pal offers their own merchant account services.