Ok you hit on a few topics...  I'll try to answer.

1 - We are in discussion with one of the exchanges right now..  it's not finalized but the concept is 100% fee-less transfers from the bank to the exchange and back.    This however is early in discussion..  (one of the exchanges would be using a flexcoin id,  hence allowing for free transfers).  Right now you can send it to any exchange you want just like you would with your desktop client.

2 - Insurance,  this is a tricky problem.   The FDIC does not recognize bitcoins,  much less insure them.    We are 1000000% open to it,  it's just that the exchanges are not in a position to cover losses considering they have enough problems on their own (Goxed, or tradehill getting Dwollaed)

So we're looking at valid solutions,  but most insurance companies don't understand what a bitcoin is,  much less willing to insure them (based on recent media blasts regarding theft, etc)

Actually not as uncommon as one might think. I know several very, very attractive female computer geeks, of which one is my girlfriend.

Yup got 4x5850's running in one box

Motherboard: MSI 890FXA-GD70 AM3
http://www.newegg.com/Product/Product.aspx?Item=N82E16813130274

PSU: Antec 1200w (You can run with less but I like to get the best so if I choose to expand I can I think someone said you can run 4x5850 on 750w on another Post)
http://www.newegg.com/Product/Product.aspx?Item=N82E16817371032

The rest doesn't matter in my opinion but I got

RAM: Kingston 4Gb
CPU: Phenom II

I run linuxcoin on them and works awesome. No need to SLI (like Dargo said) you loose Mhashes

Here is the method on how you can get your 7 bitcoins back.
Paypal completely ignores blockexplorer, and it will go as far as denying that it exists, since it is obvious that palpal does not like bitcoin, and there is no point arguing to them about blockexplorer since they ignore it because it is convenient for them.

This is what you have to do, provide a tracking number, the delivery method is not important as long as it provides a tracking number, then provide that tracking number to paypal and a copy of the receipt with the tracking number to paypal, file uploads are disabled by default on the dispute form so you will have to call paypal to get file upload enables.

Just claim that the bitcoins were sent by mail, and you are covered for buyer protection. you can send the address where the bitcoin was sent, a copy of block explorer, a certificate, anything that proves that you sent the bitcoin, in the mail claim the value as the value of the bitcoins it represents.

I got my bitcoins back after 15 days.

Also ebay feedback is screwed up big time, since seller where only allowed to leave positive feedback for the scammer, there was a lot of positive feedback  for jabgasrm calling him an scammer, all that feedback was removed by ebay, I have a picture of the feedback page before ebay did the cleaning to his feedback.
Leason to be learned from this, is that ebay feedbacks are not trustworthy, they have no value whatsoever, before 2008 they meant something, but not now.

Just thought I'd pose an intriguing question about old BTC addresses and what happens to them?
Supposing that someone, after a crash and losing their old BTC client and being unable to restore this goes and downloads another client, gets another address and starts sending to this client. Then one day, they accidentally send BTC to the old address and realise their mistake - where has their BTC just gone? i.e. down the drain or to another person? Is there someone somewhere profiteering somehow?
So what happens to the old address?
So somehow because the transaction has 'gone through', presumably there is only a record of it that can be accessed via block explorer and the client having failed to receive, the BTC has just 'disappeared' down a black hole?

Today I spoke to paypal and they are full of bs, they sayd "they believe the buyers account was compromised", I told them it is a bunch of bs, and I told them that they should have it secure on the very first chargeback.

The do not recognize electronic delivery even though they can be proven.

Here is my plan, and we are probably going to get our money back but it will take for ever, we can organize as a whole under one team since it is the same case for all of us, and under small claims court sue paypal, it will be up to the judge weather electronic delivery can be proven or not, given the very strong evidence against the scammer and paypal we have a very strong posibility of winning.

It makes more sense to sue paypal, since it is paypal that has failed us, and taken our money, the scammer would have never succeded without the help of paypal.

Under small claims in California the limit is $7500, and we should file suit for the actual amount of money that is going to cost to fight the case, legal advice, many trips to court, time loss,  email expenses, transportation, court expenses, etc, but under small claims it is mostly time that is wasted, not too much money, most likely paypal will never go to court and settle out of court since it is in their best interest.
With the evidence we have I believe we can win the case against paypal under small claims court.

Here is my email if someone would like to fight paypal under small claims court: sergiori@hotmail.com

The idea it to get all the facts organized, with all the people that got scammed.
We can each file one individual law suit, or one law suit covering us all.