I'm having the same problem, lindap630, as is my wife, some friends, and a colleague. So far I've had three different responses from PayPal Customer Service, one stating that some sellers are now refusing P.A.D payments (??), one saying that there are things being investigated and they will respond in due course, and one saying they have no idea what the problem is! The annoying this the misleading message you get when you try to pay, "this bank account (****) cannot be used at this time. Please use a different payment method from your PayPal account.", which is a load of cobblers - it only fails with P.A.D, not ordinary instant payments. The message makes you think you've got problems with your bank account! As I say, I know of half a dozen people this is effecting now, all with sellers that have accepted P.A.D in the past without problems. Come on, PayPal, sort it out!
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