I would suggest avoiding Paypal with BTC transaction at all costs. I've heard of quite a few accounts being closed because paypal is not fond of bitcoins.
Then whoever must of been conducting transactions must have been completely incompetent. If someone was to buy btc and pay for it via paypal...
First the buyer would send say I suppose half the agreed amount as personal reasons, then seller would send the buyer the btc and the buyer would pay off the remaining balance after the confirmations go through.
Would paypal know this is originating from a btc transaction? Not at all.
I think the reasons are paypal is suspicious of transactions that deal with $100+ on accounts that arent old, being used alot, arent connected to ebay selling in any manner, etc. For example! My friend sent me $130 to buy him some headphones while I was on vacation in Germany after I flaunted how AKG was by far the best brand. They suspended my account, 2 months and I received it back (Double whammy was, they found out I was underage during phone call...had to wait for my bday) I had sent $100 to my mothers paypal (as she has german bank account) and the rest to my bank account which got frozen... soo... they get suspicious easy.
