Think twice before ever using PayPal as an eBay seller.  It seems that buried in their fine print is a "buyer protection policy" and a "dispute resolution process" that is very easy for an unscrupulous buyer to take advantage of.  Consider this:  I sold my son's xBox 360 (as is, no warranty) plus games and accessories on 7/10/06 to a buyer who files a claim 8/14/06 with PayPal that the item is "not as described".   He most likely received the xBox around 07/14/06 so I would presume that PayPal has a 30 day window in which a buyer can file a claim. 

I sent him a like new unit in perfect working order; he leaves positive feedback for the transaction, and asks me a few weeks after getting the xBox if I would give him our password to xBox Live so he can use up our remaining subscription.  Do you think he'd be asking for this if the xBox didn't work?  I gave him the password even though it was not part of the sale - then a week or so later he asks if I have the original packing, also not included in the sale but I had found it in the garage so at my trouble and expense I send it to him.  There is no mention of the slightest problem with the xBox up to this point. Then he files a claim with PayPal that the unit is malfunctioning so it is "not as described". Lovely.

PayPal runs a circus court and the seller's evidence is dismissed; I end up with a broken xBox minus one of the accessories originally sent and my PayPal account is in the red $475.  PayPal has the audacity to send me an email saying "this claim has been solved amicably" and "a refund has been initiated from your account and the case is now closed".  Now they want me to bring the account balance to zero or some positive dollar amount. 

I guess PayPal figures the guy was just kidding when he left me positive feedback.  Now I am stuck with the final value fees from eBay and a broken xBox 360.  Needless to say, I will never, ever use PayPal again for any transaction......that is, of course, unless I have a need to rip-off some unwary seller on eBay!