Naah, the real story is with my WoW account. Guy bought it, stripped off all the gold, used my account to launder money from other scammed WoW accounts, then either used a stolen paypal account or notified paypal that they didn't purchase it. Paypal just takes the money back from you because a gaming account is "not a tangible item", and I was left with a banned WoW account. After a long ordeal and explanation Blizzard wouldn't re-activate my account, and thus, I have cancelled my paypal account and will never use them again, I will never use ebay to sell anything to give them profits, and I will never buy another Blizzard product (unless they make Diablo 3 and pwn me).
I didn't lose money per say, but I lost my account (which I wasn't planning on playing anyways) to a scammer.
Moral of the story, NEVER use PAYPAL to transfer funds on Non-Tangible items (I.e. Services or Gaming Accounts). I'd like to say never use Paypal period because thier customer service sucked donkey balls, but that's your choice.
-Bal.