I have always had problems with Paypal and always seem to be on the wrong end of their decisions, the way they can just freeze your account and money at any whim is very disconcerting
Maybe look into 2Checkout it costs $49.99 to setup You can accept Credit Cards and Paypal through them. They do a manual Fraud check of all payments also.
for that size paypal will freeze your account. I've had it happen as well. googlecheckout is a little better about it. I have been using them to process between 10k and 25k a week with out a problem. But may friends i have with retail sites have begun to grumble that they are becoming just as strict and started freezing accounts at a higher frequency. Alertpay is a good alternative and freeze accounts a lot less frequently that paypal or googlecheckout. However with alertpay I would strongly recommend signing up for a business account to be able to really transact without limits.
They finally released my account from there grasp, after they did a fraud check on me and my business - seems strange as I gave them all the info to get my business account without limits. But anyway got that all sorted but they have re-applied the limit as they couldn't confirm my address that I used to sign up with 8 years ago. Having moved 4 times since then doesn't seem to compute.