I read all this and it is as if you are all inside my head, saying the same things I have been thinking for the last 6 months, in my case over 230.

In all my looking around I see noone saying that paypal has taken them to court, or indeed succeeded in getting the money back.

I'm following the advice of fellow below and contacting the FSA to try to make it go away.

When it is settled, I will cancel my paypal and ebay account. I have found, you can live without ebay and paypal.

Thanks for the reasurrance fellas