I have had a few paypal disputes. Never any problem with Paypal itself though. Had one seller that never sent an item, and one 9 year old that used his mom's credit card to setup a Paypal account and purchase an xbox from me. The USPS destroyed the xbox (i'm talking 4" diameter holes and water damage), so naturally he assumed I sold him a broken xbox and filed a dispute against me for fraud, incorrect item description, never shipped item, harassment, sent me a swear-filled email demanding I refund him (after Paypal locked my account because of the fraud charge) and reported my ebay account as having inappropriate language. All this, despite me having a no questions asked return/exchange policy, and shipping insurance. It took about 3 weeks to go through the dispute resolution service. I forwarded the email to eBay customer service, and got a reply saying they couldn't do anything about the incorrect bad feedback the person gave me, but that they had investigated the account, found the owner to be a minor, and terminated the account (which would make the bad feedback look less bad).