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On the 28th August 2006, Paypal contacted the ScummVM project requesting us to remove our donation link.
My initial response/appeal, including the original complaint, may be found here: Complaint & Response.
The reply I received to my appeal:
Dear James, Thank you for contacting PayPal regarding your account. I've had an opportunity to read and evaluate the message below. Although you make valid points throughout the email, the fact remains that you have developed a game modulator that allows games produced and developed by multiple companies to be played on their non-designated hardware platforms. This act in itself violates the PayPal AUP and we request that you remove PayPal from http://www.scummvm.org/. If you have any questions, please contact the PayPal Acceptable Use Policy Department at email@example.com. Sincerely, PayPal Acceptable Use Policy Department PayPal, an eBay Company