100% correct! My mate got done like this from a guy in Europe a couple of years ago, he sold a mobile phone for £200, withdrew the money and actually spent the cash it, but a week after the transaction had taken place he was £-200 in his paypal account and was threatened with debt collection agencies unless he brought his balance into credit.

Balance transfer is the safest way (for you) although not everyone is a con man, 4 weeks ago i sold a stroker kit to a guy in germany for £900 and he paid via paypal, i posted it out to him, he received it ok, but its always a risk for the seller.