he received payment last sunday and emailed me back to confirm that.  he said the bitcoins would be sent on may 1st but hasn't replied to any of my emails since yesterday

Yes, my account was restricted by Paypal. I'm refunding as much of the payments as I can. Any of them that I can't refund, I'll go ahead and process. Please be patient, it may take a while to get to everyone.

This weekend was the worst possible time for Paypal to restrict my account. Oh well...

I don't think it's a coincidence that CoinPal and Morpheus had their accounts frozen at roughly the same time. Paypal is afraid of somethinig.

Competition 

Not the way they act & with the fees they impose, they can't.

This is a pretty great idea although I'm not sure why you need to charge money and physically mail the paper certificate rather than just have a secure delivery online for a PDF version of that certificate to the bid winner...but anyhow...kudos for the creativity!

CoinMan

http://www.ipaygold.com/  This is a PayPal clone but owned & operated by some friends from China. It's a PayPal alternative and worth a look. They are big exchangers there for digital currency through their other web sites including Paysgold. 

In the past years, both PayPal and Moneybookers have frozen and closed all digital currency exchange accounts except those operating in secret. It's still true today, PayPalsucks.  My advice to anyone and everyone would be to integrate with Webmoney Transfer. www.wmtransfer.com is the largest in the world and they permit this type of exchange and encourage it. They also offer MasterCards and other ATMs. I feel an exchange point between Webmoney and Bitcoin would be much better than PP.

Best of luck and keep up the good work.

Considering that ebay OWNS paypal, I hope that your efforts there live long and prosper.

I think this is very much worth freaking out about.

In fact, if I weren't such a lazy bastard, I would be drafting a press release on this and the CoinPal cutoff, and blasting it out to as many sympathetic media contacts as I could find.

Doing so would have three effects:

1: Casting PayPal's business practices in a (consistently, reprehensibly) bad light
2: Bringing attention to Bitcoin
3: Highlighting state-linked suppression of alternative currencies
4: Something random having to do with WikiLeaks

Okay, that's four.