There is only one way to resolve this. Use your credit cards. If you dont have one then get one from entropay. Here you can load funds from your visa or master card debit cards. So You receive funds in Paypal withdraw it and then upload them in the entropay card.
some of my friends tell me that both doing legal and illegal things will affect our account...LIMITED...that sucks..
If Paypal blog does not have this news item then we need not worry at all and as somebody pointed out it would have been a spam email.