Allan, Your story about paying for the item twice does not make much sense but it does sound as though you were scammed somehow.

However, your story about unfriendly phone calls does not sound right either.  If you were somehow scammed and paypal has returned your money then they do have a right to verify your information to try and work out how/why you were scammed.

Also, you can only do a certain number of transactions through paypal before they need you to verify your identity by providing 100 points of identity as you would provide to an Australian bank.  It has to do with Australian money laundering laws.

If you refuse to do this you will soon find your paypal account closed.

You are lucky if one photo ID is all they want.  At the time I had to verify my identity many years ago I did not have a photo ID and had to provide 4 or 5 different forms of ID.