I have done many deals via PayPal as buyer and seller for as much as $6k give or take. Always withdraw and clear it to your checking account prior to shipping out the game. There is no way to get scammed by this method at all once the money is in your checking account. And it only takes a day to land in your checking account.
That and its all about relationships and trust. Its always best to deal with folks you have a relationship with, can easily build a relationship with OR know people who have verified and solid relationships with. I had once incident where PayPal locked up money I was paying to a seller for several days (long story, i basically made a transaction to an incorrect email and the money ended up in limbo for a week) and the buyer shipped me the game anyway while it cleared. There was a level of trust. Always build that trust and talk to other folks who have dealt with a particular buyer or seller if you are doing out of market / shipped transactions.