Hi, A Paypal user has done a claim against me and won. So after a week and a bit (thats how long it took to take the money out of my bank and into my PayPal account) I have the money to pay that user back but I cant seem to give a refund... how should I go about getting my PayPal unblocked and paying the user?
There must be described in your account how to do that. Look around more carefully and you will see what you have to do.
You should be able to issue refunds even with a frozen account. Check the specific transaction / dispute and see if the option to issue a refund is there. If it's not, give paypal a call or an email and ask them how to refund the customer.
Why did your account get limited? I would find that out first. It could be possible that someone made a payment to your account with a stolen credit card.