Is This A Scam

I am "tearing my hair out" trying to get a paypal account so I can purchase or sell on ebay. I went to my bank on 17th November 2011 to look for a deposit of £1 from paypal so that a further check can be made on my account. I talked about this with bank staff. I told them that this was the third check on my account. They were immediately alarmed and suggested that I may be a target of fraud by a third party using paypal's name. Why did paypal allow payment to a Singspore firm? Yet not allow any further payments out?

Trying to get out the whole system I have been asked for further private information.
My card number and details
A copy of my passport of driving licence with picture address etc
Further bank details including a photo copy of part of my card statement This is a further intrusion into my account!
I just cannot believe that it can be so difficult to get verification for a paypal account and I am worried sick that I might be target of a scam!

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