I just attempted to use mtgox code with bitinstant to transfer funds to my paypal account.  The mtgox code got claimed, and that balance is missing from my account, but it did not deposit any money into my paypal.  It even says "Order Completed" on their webpage.

I've used them before so my paypal account has already been "authorized" in their system so I know that's not it.

I opened my email that I entered in for tracking the order.. I see the standard notice from mtgox and them.  Only in the message from them it shows it failed.

APIResponse: {u'errorCode': u'INSUFFICIENT_FUNDS', u'paymentID': 0}

I would be very very leary about using bitinstant right now.

I will update this thread as the issue progresses.  Btw, the newbie limitation thing on this site is highly annoying.