Yes cq_tech...

This was told to me over the phone by a PayPal CSR. He was adamant that the photograph of a cancelled stamp showing the addressed envelope would stand up in the event of an INR claim. I have not tested it tho so would recommend that anyone who wishes to try this should call PayPal and ask for themselves. We all know how inconsistent these CSRs can be in their interpretation of the rules.

Another method he suggested at the same time is to fill in the lodgement receipt forms (available from the AP web site) with the name and address of the buyer. The PO staff member at the counter sights your addressed envelope and stamps the matching receipt.

Either of the above two methods will stand up for INR claims according to him.

The downside is if you are mailing out 25 envelopes per day you are going to be at the PO for quite a wile taking pics or getting your receipts stamped. And you will possibly have some grumpy other customers behind you.

From the discussion with the CSR I clearly understood it to be that the important factor is proof of postage rather than proof of delivery. This rule may vary in other countries tho.