Rowan I am so sorry to hear about this!! I am so happy you were able to resolve this issue!!
I wanted to add that you can link your Paypal account to a separate bank account that keeps a zero or minimal account balance. Most banks offer a account to link to paypal and keep your checking account safe. I do a ton of business on paypal and am not sure how I would take payments on auctions any other way.
BTW: Will you do another group buy? I am watching for it, but I'll send you my money any way you want it!