http://www.paypalsucks.com
There are toll free numbers for paypal there.
I went through the same bs after a few years of loyal service with them. It's funny though as I've gone through their user agreement twice and as far as account limitations go, I can't find anything that says they have the right to limit your account just 'cause (which was the reason I was restricted, no problems...they just wanted more verification information).
Oh and as a tip....when you get in touch with someone by phone, ask to be transferred to the resolutions department...the 1st level of customer service people do absolutely nothing for you.