I never said the OP would win (or lose) the claim. I don't know the Australian postal system, so I'm not sure what the OP means by sending it "normal." The info above explains what PP means by "proof of shipment." What I'm pointing out is that "proof of shipment" and not "proof of delivery" is what PP requires over there. From what I gather, some of the methods include tracking, while others don't.
This is what I was referring to--the basic requirements for eligibility:
Transaction Eligibility Requirements for the Seller Protection Policy.
Subject to the provisions of sections 4.2.4 and 4.2.5 a transaction (where the buyer makes a PayPal payment on or after 27th March 2008 AEST) will be eligible for protection under the Seller Protection Policy where the following requirements are met:
8. You sold the Merchandise via any eBay website; and
9. You provide PayPal with valid Proof of Shipment of the Merchandise; and
10. You posted the Merchandise via an Approved Postage Service; and
11. You sent the Merchandise to the address specified by the sender of the payment which is highlighted on your account Transaction Details Page or otherwise notified to you by PayPal through a PayPal application programming interface ("API").