I quit using Paypal years ago... back when they froze accounts involved with some of the freer money exchanges... like eGold. If they had returned the money and shut down the account, that would have been okay. But they didn't always return the money.
Back then I didn't know what to do about it. Now I do, but I don't have my old records any longer. Besides, in my case I lost only a couple of bucks, or so. But some people lost $thousands that they never recovered.