This was many years ago, and I have almost successfully avoided them since. However, a few months back I had to buy something from Ebay, and I could only pay through PayPal. I now live in a different country, and I have learned that I needed to create a brand new account, you can't change the country of the old account (not that i wanted to use that old account anyway). I made a new account, paid that Ebay guy, and got my merchandise. A month later (after I had already received my merchandise and having not used PayPal after that) I got an e-mail from PayPal asking me yet again for a copy of my passport, my birth certificate, and a proof of address.
Unbelievable. Stay away from PayPal if you can!