I think, most of us, still have not forgotten the Feburary, issues between PayPal and India. Now, again, "electronic funds" withdrawal is discontinued for India users. "In accordance with regulatory instructions, from July 29, 2010 onwards, you'll only be able to request for a cheque withdrawal of funds from your PayPal account."
"we're working hard to restore the electronic withdrawal service. In order to help you deal with this change and until further notice, we'll refund US$5 cheque withdrawal fee to you for cheque withdrawals made on July 29, 2010 onwards," stated PayPal.
Dear PayPal, please note, the postal services in India isn't up to the mark, if you want to pay through "checks" can you do us a favour, please send the check via "courier" only, as it doesn't cost much. And, if you want, you can charge India users "courier" charges. This'll help us getting our hard earned money securely and on-time.