So I can't figure what I'm doing incorrectly here.  It's this type of frustration that forces me away from paypal.  Their help states if you are transferring money from your PayPal balance to another person using Friends and Family then there is no fee yet here it is charging me a fee to do this exact type of transaction.   Clearly I'm missing something and PayPal is not being upfront about it to make this easier to understand.