I 'owe iTunes money for purchases' but it won't let me pay it...

I tried to buy a song but it said I owe money. For some reason it didn't successfully take it out of my PayPal account. I am trying to pay iTunes the money I owe but it says 'add new Credit Card or Debit Card' and my PayPal card is the only card I have. I have no other Visa or MasterCard at all, just PayPal. How can I just pay with my PayPal account and how come it isn't letting me?

FYI to anyone reading this thread, that disclaimer about adding a debit card or bank account before selecting Paypal appears nowhere when setting up an iTunes Store account for the first time. Instead, the PayPal login is rejected with the generic error message "Error Detected This recipient requires that you have a valid funding source from United States in order to complete this transaction."
There is a "Goto Paypal" button below this, but clicking on this results in another Paypal login prompt; this one works with the same userid and password information but does nothing more than open a window on the user's account info. There is no option to "Return to iTunes" and nothing happens until the user logs out of Paypal. A acknowledgment message appears but there is no return to iTunes in the browser.
Meanwhile, the iTunes application is still displaying the "Review your payment information" window with Paypal selected. Unless a different option is selected, the above process is repeated.
This happens in Windows XP Pro SP3 with both FireFox 3 and Internet Explorer 7.
It would be really helpful to new iTunes members if Apple would add the debit card/bank account disclaimer somewhere in the signup process.

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