There's probably no chance on removing the limit on your account. They must have suspected something negative to come on with that decision.
i am sure paypal also send you one more line hidden in that email... which says "Welcome to PayPal Hell. You been busted and owned by paypal" lololol..... i am sorry to hear what paypal did with you.... i hate paypal more then i hate any other thing... i will suggest you to get a new paypal account on a friend or relative's name but this time be careful...
wait... dont use the same address or they will limit his account as well i think... but i am not sure... so ask others if paypal will close his account or not if with same last name and address.... i believe paypal will close your borthers account too when they will check the last name and address are same.... so dont open it right now... post a new thread to make sure about this... and then open your account... plus this time you use some tricks to stay away from fraudment payment.... i will tell you my secret how to be safe at paypal from frauds and scammers....