[cblurton]

You will still need to remove the paper from the holder in the dark in order to process it, just like with film.

I teach kids pinhole photography as a starting point to learning about photography in general. The advantages of using paper instead of film include: (a) it is cheaper than film, (b) paper can be handled safely in safelight so complete darkness is not necessary, and (c) paper used as a film substitute can be processed just like paper is processed for contact prints or enlargements. No special equipment, chemicals or treatment is necessary.

There is a lot of information about using paper instead of film out there. There are even books about it (do a search on Amazon for "paper negatives"). It is very easy to do and yields pleasing results, pretty much indistinguishable from film to the untutored eye.

You might also take a look at:

http://www.f295.org/Pinholeforum/forum/Blah.pl