Wow! Good to know!! So in short, scratch what I said and read your serv agreement for yor country!
For what it is worth, I thinks Paypal provides some protection for the buyer /seller, so long as you follow all the terms and as Matt mentions, be sure they are the terms for your country....
I have been on both ends of buyer/seller issues and Paypal has always come out with my utmost appreciation, I was sure to follow the terms though and that is all I wish to impart, especially since they differ by country