PayPal will be enhancing the Seller Protection Policy to include some international confirmed addresses. Seller Protection policy can get tricky, so be sure to read the information on the website carefully. Here is the original announcement:

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Hi.I'm Dan Levy, Senior Director of Consumer Protections. My team's job is to manage the protection programs that improve buyer and seller confidence in transacting online.

Sellers have long requested that the PayPal Seller Protection Policy (SPP) be extended to international transactions. I'm pleased to announce that we will be expanding SPP in mid-June to cover US, UK and Canada sellers who ship to confirmed addresses in the US, UK and Canada.

To increase the number of items that qualify for SPP, PayPal will also be expanding the methods we use to confirm a buyer's address. Please note that online proof of delivery remains a requirement for coverage under our SPP. For more information on PayPal's Seller Protection Policy, please visit our Help page.
http://www.paypal.com/cgi-bin/webscr?cmd=p/gen/protections-outside

To help sellers understand their options related to managing risk, the PayPal seller protection team will host an online Community workshop [http://forums.ebay.com/db2/thread.jspa?threadID=410544216] on Tuesday, May 31st at 3pm PDT. During the workshop, we will answer your questions about this policy enhancement and PayPal's other initiatives to protect sellers. Hope to see you there.

Regards,

Dan
Senior Director, Consumer Protections