This is par for the course when dealing with PayPal, unfortunately. Many, many people have had the same problem -- some famously, like Notch with Minecraft. Even when you aren't dealing with significant sums (Minecraft had $750,000 tied up by PayPal), this still happens. Talk to enough Demand Media writers, for example, and you're guaranteed to run into one who's had to deal with PayPal's nonsense.
