Re: Stealth account and physical addresses
The reason why it's not a good idea to use your friend's address is if you have a problem with your account, eBay and Paypal could very well link both your and his accounts together and suspend them both, especially since you mentioned he didn't update his eBay account with his new address.
Like James mentioned, there are many options available and they aren't even that expensive. I completely understand wanting to keep costs low, but when people try to cut corners, the problems start.
PO Boxes are extremely cheap - it works out to $3-5 a month for a small one. It's really not a lot of money for one, and it's a lot better than getting your friend involved.
You can also print labels outside of Paypal - like using Stamps.com, and have one central return address on that label.
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