Paypal ?

No the problem isnt in the money. I only had some dollars there, not a big deal.
But how does verifying my paypal account resolve the issue ?

I could make a new account but since I use my paypal for ebay, that requires valid information, resulting in 2 indentical accounts from the same IP.
That would probably get the new one blocked aswell and reduce the chances of getting anywhere.

Also the agent for some reason referred it as "business descision from paypal" and said I need to find a new money usage service right away.

Well the worst thing I have done is trade on mpgh, which when found out could be a big deal.
I doubt they would though, also the limitation was made many weeks after I had even done anything on paypal.

Well one problem could be that you might be under the age of 18. I have that same message but when I called and they said it's because i'm under the age of 18, but I don't know how old you are so I don't know if that's the same reason.

I am indeed under 14, that might be the reason but its a bit wierd that hey would make it private.
Also permanently banning for that is a bit much I think.
That would be good :P
But pretty unlikely