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Weird, but worked
 

Set up an account using a GC that still works. Listed and sold some stuff and got a notice from ebay that the card was declined when they tried to collect fees (there were more than the balance I loaded on the card when I got it) I selected to make a one time payment through Paypal and change my billing option to Paypal balance and it worked.

The Paypal account is set up only through the GC as well and has not been verified by adding a bank account.

Almost reminds me of the good old days when you could leave them holding the bag for seller fees...something I wouldn't necessarily condone, but given their practices which forced me to seek out this great forum in the first place, I have no problem sticking it to someone who stuck it to me first.

really this is a brand new account? thought it was just older accounts that could accept that...can you clarify the steps you took to make it and link it all up?

In a few days won't ebay notify you that the funds were not available from paypal?