I tried to do a mtgox to paypal this morning but still waiting for the funds to show.
The API response in the automated email shows as 'INSUFFICIENT FUNDS'.
Thank you for your transfer to PayPal
OrderID: 39ff4ee6-e1d9-4fa8-81fc-664359f7c9c6
EventID: 13d10c59-d0c4-4d10-9387-f0ebde3b25b6
DestAccount: (redacted)
QuoteID: a25c2790-c3f4-4a87-b579-06611384095a
User: SYSTEM
DestExchange: paypal
eventtype: Order executed
EventSentAt: 1365160966.06
APIResponse: {u'errorCode': u'INSUFFICIENT_FUNDS', u'paymentID': 0}
FundsSent: $455.288 USD
I filled in a support form on the bitinstant site, but since I had no response, I thought I would post here.