<< In your future eBay auctions, you need to put that you will NOT accept payment through PayPal from a non-confirmed address. If the buyer has a lot of feedback, I would let them slide. If not, I would ask them that they need to confirm their address so that you have the protection guaranteed by PayPal. They can just confirm their PayPal address and re-send funds to you. Sounds harsh, but I'd rather get a neutral/negative feedback than get screwed out of a lot of money. If it is a small amount of money, you might want to consider just taking it.
Remember, sound apologetic if you decide not to accept it. >>
You can't always confirm your paypal addr b/c in order to confirm, you have to have a credit card tied to that addr. I often buy things but get them shipped to my office because I can be sure that there will always be someone there to sign for it and I don't ave to worry about things being left on my doorstep in plain view.
I don't blame sellers who won't send to unconfirmed addresses and I just give them the confirmed address.
I guess some people will get all pissed off, though.