How do I re-add a blocked Paypal Account

I previously raised a query on a paypal transaction for a payment to apple. Paypal/apple unlinked the two accounts, the query was sorted out but I now can't re-add my paypal account to my apple account. There isn't a paypal option when I try to add it via a browser (chrome/firefox/IE) and the mobile settings app tells me "Invalid Payment Method - This payment method can't be used with the iTunes store. Try again using another payment method".

Is my paypal account now blocked and if so, how do I unblock it?