Paypal has been absurd on this issue, and not clear about it when you ask any questions at all. First I had about 10k held in an account and they sent the same letter that everyone else has shown previously in this thread, so I called them they said if you do everything required on the resolution page it will be okay, so I returned everyone's money (huge pain) luckily it was mostly contracts so it didn't cause too many problems, signed the affidavit and had it notarized, and they perm-ban my account shortly after.
I decided to sell some scrypt mining hardware, computers with multiple gpus basically, so I called them and made sure that it was not against policy to sell these machines and they said okay. I sold 1 rig and had my account frozen. They just wanted to know more information about the item so I explained the item and they lifted the freeze, and send me an email titled "your account is in good standing" immediately followed by "payment has cleared, you can now ship your item." I submitted a bank transfer for the amount from the sale (3700). The next email I received was "your account was perm-banned" and I check the transfer and it was reversed. Thankfully I did not ship until the money was sitting in my bank account but seriously, they lift my freeze, tell me to ship the item, and then reverse my transfer.
Bottom line is they don't give a shit about their clients. I know everyone thinks that the solution is not to use PayPal and I wish that were an option, but reality is that eBay gives the highest customer base available and everyone wants to use PayPal for ease and familiarity.
The President of PayPal even tweeted that it wasn't against policy to sell rigs. Still fighting daily with them, they have caused me some serious stress though and are really screwing up a start up.
Then I see the same sellers selling rigs and contracts over and over with PayPal as the method of payment. I don't get how they can continue to do this when they seem to be so active in my accounts.
So frustrating, I hate them so much.