Wow, that is one very well crafted email. Re-posted in case anyone needs a template.
Thanks. BTW, I forgot to mention that I put "Butterfly Labs" as the subject of every e-mail to PayPal. I also repeatedly mentioned their name during each phone call, and brought up the fact that they are violating PayPal's ToS. Maybe something will sink in if others do the same.
One request: If anyone else gets one of those
"your order is under review and being taken out of the queue" calls from BFL, please post about it. That just seemed desperate and creepy to me.