Is the PP account US based? If not what country is the account based out of?
Conversion fees are an issue. It's almost cheaper for me to spend 6 hours to drive to Canada and do a face to face and drive home then use the crappy PayPal conversion rate. OK not quite that bad but you get the point. Sorry to hijack your post with this but it's becoming more and more of an issue for me (and I assume others).
Also are you sending as F&F or a regular transaction?
Thanks,
Dave