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I have been a powerseller on Ebay in the past, and work for an online wholesaler/retailer that takes Paypal for some transactions.
1) If the person is not confirmed, it simply means they have not gone through the confirmation process. Paypal makes a very small deposit to the bank account you list with them, you email them back to verify the amount. They then know you are really who you say you are, and that is really your bank account. At least that is the way it used to work, pretty sure it still does. It does not matter how many times you have used Paypal, if you have not gone through this process, you aren't verified.
2) If they are not verified, they can cancel their payment to you up to 6 months after the transaction, and you don't have much recourse except to bluster and rant and try to scare them.
3) Look at their Ebay feedback, and when they registered with Ebay. Have they been around a long time? If so, you probably don't have much to worry about. Still, if this is a really expensive item, you are right to be concerned.
4) Will you take a money order or certified check? If so, contact them and tell them that because of their Paypal status you will only accept one of those. Then wait.
5) Paypal does not "suck". Unless you are a complete moron, and terrified of the internet, you soon realize it is one of the safest forms of online transaction available, as long as YOU FOLLOW THE RULES. It's one helluva lot safer than handing that 20 year old your credit card number at the end of your meal.
With all this being said, I have hundreds (probably thousands) of Paypal transactions under my belt, and I have occasionally "bent" the rules and sold to unverified customers and never once been burned. You just need to take all the facts into consideration and make a judgement call.
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