Well good news! First off. I received the following email, which wasn't much of a reassurance to my concern...
"Starting 7/25/2011, money from payments you receive will be placed in a pending balance for up to 21 days. By doing this, we're making sure that there's enough money in your account to cover potential refunds or claims.Even though you can't access the money right away, please ship orders quickly and communicate with your customers. After 21 days, you can withdraw money from each payment as long as the customer hasn't filed a dispute, chargeback, claim, return, or reversal.
The money may be available sooner if:
We can confirm that the item was delivered.
Your buyer leaves positive feedback. (Applies only to eBay items)
This change isn't necessarily permanent. We'll review your account every 35 days and re-evaluate if we should continue to hold your payments. If we decide to stop holding payments, we'll email you to let you know."
Then I received the call back from the Paypal Senior Customer Service Rep, who had great news for me! He told me that they have been getting flooded with calls reguarding this "misunderstanding". He then proceeded to tell me he went through my account and noticed most of the payments are "mass payments" meaning from a company such as Linden Labs. He assured me that these types of payments will not be held.
Sorry for the concern, but this thread might end up being usful in the long run if anyone elese receives a similar email, I know the first place I checked was the SL forum.
Thanks!
Jeeper
(P.S. LindenLabs should STILL try to give us an alternitive to Paypal... putting all your eggs in once basket sometimes bites you in the rear)