Me and my friend are going to buy the gold edition of Dawn of War 2 since it's 20 bucks on the weekend. However his paypal is not ready yet so would it be possible to buy two copy's on steam and gift one to him. Then he would just pay me back when his paypal is ready.

Should be easy enough I would have thought.
  Gifting is an option
O_o 
But the gifting copy first... then the one for yourself?

You can gift a game to someone, ive never done it but I know its possible.

When you're in the shopping cart simply select "Purchase as Gift", here's a pic:  
 

Yeah, it just involves checking a box at checkout.