I am also getting the same error message when trying to send money to my sister's paypal account. I first became aware of this problem yesterday. My sister called up paypal, and they said that it would be working today... which it isn't. Actually i'm not suprised, as this seems to be typical paypal style. I wait impatiently for the day a reliable competitor comes onto the market so I never have to stress with paypal again. PLEASE FIX THIS BUG PAYPAL SO WE CAN SEND MONEY!! ... Now i have to send a Western Union and pay their exhorbitant commsions on money transfer.
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