Exactly what are the protections you get from pp?If you are making a high dollar purchase,say $1000 and up,and someone tries to screw you,do you get the money back if you prove that they did you wrong?
The Paypal Seller Protection explicitly is there for physical products which have been physically shipped with a shipping agent which offers tracking and proof of delivery. It does not work with virtual product or services which cannot be proven. Here is the tips from their website https://www.paypal.com/cgi-bin/webscr?cmd=xpt/cps/securitycenter/sell/TipsForSellers-outside
...only if PayPal can recover the money from the other party. If they clean out their account you may be out of luck. If you fund your large Paypal order with a credit card you can get the credit card company to do a chargeback on PayPal - but that could jeopardize your future use of your PayPal account.