Personally, I ended up having 5 "warnings" before a 7 day suspension, after the 7 days were up, I sold 11 of <different item>, re-listed my old ones again, two weeks later I got hit with a 30 day suspension... I already had scheduled listings due, so I let them run... a week later I got hit with a perm ban....
I some what disagree a little with rsot on this matter though, If this is a disposable account, and you have a disposable paypal linked to it, Then personally I'd relist the items, while working on another stealth.
The way I see it is; you'll keep getting a income, the next punishment is going to be a seven day suspension, after you've hit this state, then I'd completely agree with rsot, cut your losses, and let the account age for a while
But; This all depends on if the account is a disposable stealth, and what items you're selling.
I've had the competitor problem before, and called eBay informing them my items were legit, and I wasn't happy with what was going on... they "claimed" to put a note on my account; Although this was my main account, and after a week(Of no problems) I didn't list the problem item again, so unsure if eBay do infact add/take notice to /notes/
Shane
Edit: No disrespect to rsot of-course. He's been here longer than me, and is more experienced in this area
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