i don't remember anything like this when i set mine up:O
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I think if you want to link it to your bank do they take a small ammount out like a few pence? then simply put it back, just to see the account works. Its a while since i signed up.
PayPal is pretty decent, secure and a lot of websites use it, sadly not all. For example the popular play.com sadly doesn't use it, or it didn't last time i did.
To the original poster - one thing no one has mentioned and I thought I'd let you know is to be on the look out for fake emails trying to Phish you. Simply they are fake emails, often a similar design to the real PayPal emails that have the aim of stealing your account details.
These emails can be avoided however if you know what your looking for. Firstly, emails asking for your password - PayPal will never ask for your password so delete them - emails such as your account has been suspended or temporary frozen are 99 percent of the time scams - if your in doubt - you can simply go directly to paypal and login instead of loging in via the emails link.
If you have Firefox, other browsers probably now this however, and hover over a link, you can usually see the target. A lot of scam emails will say click here or something or may even say paypal.com but the link thats actually been coded in these scam emails is something different, sometiems similar, sometimes a completley different domain e.g. www.scamsiteblablalongname.com/paypal.
Yep - If no one had told him and he'd seen it in junk, what if he'd persumed it was legit and just got flagged accidently
Well, paypal apparently spend more on security than the site its self lol, probs most secure site avaliable today :)
Lew.