Unfortunately the reply is the same - We have not changed anything with our Paypal settings. There aren't any settings that would even allow us to exclude people from certain countries. It's some issue with PayPal and you can find many threads in the PayPal support forum from people with the same problem - But no official reply from anyone from PayPal.
I suggest trying the same workaround I suggested to Mynah:
I suggested work around seems to be to send the money directly to the paypal account instead of using the donation button, so you can try that and hopefully it will work? Try sending the amount you wish to donate to
[email protected], add a note with your username if that's possible (or send me a PM) and I can hand out the Fairy Coins manually.
I don't know whether this will work though, I never got a donation or any feedback from Mynah after that, but I don't know whether that's because it didn't work or she did not try.