I had the same problem when i first started listing, they ended up wanting me to fax ID but instead, i simply said fax or mail was not a secure method of supplying documents that could see my identity stolen. I mentioned i was more than happy to re verify myself via another credit card or online verification (i know they didnt have this) and I didnt get mad, i just persisted, and what they ended up doing was putting my selling limits on 2 items at a time until my selling feedback got to ten before lifting the limits...its been ages now and they have left me alone, i get more positive feedback every day! It sounds like a drag but a selling feedback of 10 isnt hard to achieve as you know, and it saved me from having to start over on a new account!
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