ITunes not accepting PayPal payment info

I've been over this with iTunes, and they don't seem interested in helping. I keep trying to set up PayPal as my payment method in iTunes and it doesn't change. It never sticks. PayPal now has a few dozen billing agreements with iTunes, clearly saying it's okay to connect. I've deactivated them and tried un/reinstalling iTunes, resetting my iPod. I can not get iTunes to hold PayPal as my method of payment. It seems that others are having the same problem.
It had worked for months prior to sometime between October and now.

I have the same issue, I'm using Safari and my itunes is running on MACOS X, so if this combination won't work we are in a real trouble, also I bought a new IPhone 4 and went I try to access App Store it ask me for verification, I check if my credit card info is correct, just at the security code, and went I hit done said that is not correct.
I have the credit card in hand, that was the reason to change to paypal, but still won't work I open a case with support, but still waiting for those 48 hrs that are right not 72 hr waiting

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