I had the same issue over the last couple of days. What I did to fix the error was to delete all paypal related cookies in my browser. I'm really starting to HATE paypal. In the last two years they've begun limiting and suspending accounts more and more...if you buy an item online from a country other than your own they limit your account; if you get a refund, they limit your account...seriously, I hope google checkout replaces these suckers.
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