Paypal Merchant Services says:
In speaking with the Account Manager for newegg, I was informed the issue lies within newegg and was advised to have your contact newegg directly. The error message on their website, advising you to contact PayPal was incorrect. I apologize for any inconvenience this has caused you.
The Customer Service phone number for newegg.com is:
Toll Free: (800) 390-1119
Mon - Fri: 8:00am - 5:00pm PST
Strangely, Newegg customer support suggested placing the order as "I
am going to mail you a check" then call them and give them my Paypal
debit card number. This allows me to pay by Paypal without actually
using Paypal. Apparently fixing their payment software wasn't one of
the choices.