Originally Posted by JonNYC

If PayPal puts your account in "limited access" status-- and yes, for some reason it is PayPal, not eBay who enforces this-- they can and will freeze your balance at the drop of a hat, and hold onto your money for 180 days, or even worse. Contacting them via phone, e-mail and fax will have no effect.

Any sign of an auction that is "not an auction" as it were can result in this "limited" status at PayPal-- even if both parties are mutually agreeable and it is 100% apparent (and conceded by PayPal) that no fraud or illegality has been committed, you will be treated the same way as a fraudster would be, w/ no chance to appeal in a meaningful way. Trust me.

For more on what PayPal does and does not do, take a look here: http://www.paypalsucks.com/

It's quite sobering.