paypal is bad news!
if you read the agreement they are absolved of all credit fraud and you [ as the seller ] are required to pursue the case through international courts.
my friend was ripped off for about $1k from someone in moscow - payment went through - 2weeks later paypal said it was a fraud [no explanation of course] and auto-withdrew from his account.
the only way to use paypal is to setup another bankaccount exclusively for it and immediately withdraw after a transaction.
my friend is taking them to court ill let you know if anything comes of it.
also checkout paypalsucks.com