This is a well-known scam in which the scammer claims that paypal is holding his money until the seller wires money via Western Union.  The scammer doesn't actually use paypal, but sends the seller a fake email claiming to be from paypal.

More details here:

https://www.paypal-community.com/t5/Sending-a ... .language=en-gb

http://www.scamwarners.com/forum/viewtopic.php?f=26&t=59616#p164295

I just wanted to quickly get the scammer's phone number, email address and name in 800notes so other people would find it if they searched on it.  :)