Paypal once froze my account too (it had about $3000 in it then). I got it solved over the phone in about a week, but the customer service was really really hard to work with. And here's an anecdote:
When I called the customer service for the first time, gave them a few details, up until the point I was from Romania.. their (clearly shocked) reaction: "Aaah, you're from Romania ? Let me redirect you to our India office". WHAT ?!? Are you kidding me ? Romania was in the European Union back then already, and I was already assigned to the Ireland branch of Paypal (an email about that was sent).
When I called the customer service for the first time, gave them a few details, up until the point I was from Romania.. their (clearly shocked) reaction: "Aaah, you're from Romania ? Let me redirect you to our India office". WHAT ?!? Are you kidding me ? Romania was in the European Union back then already, and I was already assigned to the Ireland branch of Paypal (an email about that was sent).