I've had my PayPal account frozen for almost a month for absolutely no reason at all. I wasted so much time writing e-mails, calling them, even writing letters to them in the US. It turns out that they made a mistake. No reason for the suspension, no reason for the mistake, no apology, no compensation, nothing.
The company I work for had a similar experience with their PayPal account. This time they were prevented from withdrawing any funds or refunding any buyers. However their eBay account could continue selling as normal. This time there wasn't even a reason given for the suspension and after a lot of agro and around 3 weeks the suspension was lifted.
PayPal is great until they decide to do something to your account. They are extremely difficult to deal with, however they respond better to a aggression than they do to the softly softly approach. My best advice is don't rely too heavily on eBay if you have a business, and regularly empty your PayPal account. They behave like a bank but are unregulated meaning they do what they like and you have very little comeback.
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