I think all addresses outside of US are "not confirmed". From what I've read, I believe what it means is that there is no link between the credit card address details and your Paypal address details.
And I guess there is a possibility that you could use someone else's credit card, fudge the address, get the stuff delivered, then when the bill goes to the credit card owner, he/she disputes it, then the credit card company goes after Gary.
A simpler way may be not to use Paypal but something like Bidpay which actually sends a draft to the receipient. The catch is that the cost is borne by you (I think it's US$5). However, this is a moot point as you've already paid.
I sympathize with you, it's not easy to arrange an MO, and with this mucking things around, it makes it even less pleasant.