>   But I'm no longer accepting paypal payments myself 
  > and I would advise everybody to keep their account 
  > balances as low as possible.

Sound advice. In my new private project, I redraw from paypal every 200 euros. Thankfully, that's a lot of redraws (for certain definitions of a lot) and I'm a bit behind redraws but I learned the lesson from the losses the company I work with endures every month. Details in this same thread. (http://news.ycombinator.com/item?id=1679288)