In a nutshell, buyers outside of the U.S., Canada and the UK cannot have confirmed addresses. However, if you ship to the address on the PayPal transaction page, you are likely to be covered. I'm not sure what the restrictions are, but there are a few as far as I know, for instance, if you have very low feedback, you might not be covered by seller protection outside the U.S. and Canada...again, I'm not sure. If your buyer is in the U.S., it is up to her/him to jump through the necessary hoops to satisfy PayPal's requirements for a confirmed address, and terms & conditions in your listing.
Is this part true? I received a payment from an international buyer and her address is unconfirmed. Do I still send her the item or do I need to tell her to have her address confirmed? Paypal is telling me that I'll only be partially eligible for seller protection. TIA.