Having Paypal sent as a gift when it's for the purchase of items is against Paypal's TOS. Sending Paypal as a gift is only for a gift, not for the purchase of items. The fees for Paypal should be figured into the price of the items.
Sorry to hear about what happened. I kind of feel bad for the fallout after we struck a deal. I will ship the game out priority the next business day after I get the bag and game. Also was wondering if I could get a beta code for BF BC2!