QUOTE (Nemo Niblets @ Nov 17 2009, 10:09 PM)

Oh okay. So, is there anything else I need to know to prevent me from more headache?
No, just make a payment as an unverified, and the recipient will take it. It isn't a big thing. Most paypal accounts are this way, outside of Ebay it doesn't matter at all. Paypal accounts don't get hacked, people fall for phishing scams, and the like. I think the reason these people target paypal users is because paypal is used by more people online , (rather than say Bank of America), and since these scams are done through bulk advertising/email they go for the most common type.
For a safe paypal experience, shop at stores that actually exist, (dont buy from pop up companies unless you can somehow prove they have some sort of legitimate tie to the world other than that pop up screen). never give out your password, especially by email, and make sure you are actually at paypal when you login, not just a website that copies paypal logos, color scheme etc...check your browser bar.
After that you should be fine. Paypal gives you an added layer of protection over your credit card, and as long as you don't go around giving your password out and protect your computer from scammers you will be fine.