So I called Paypal knowing that their buyer protection is only valid if a package has tracking - The PP rep verified my fears. They know about it and yes, USPS is NOT valid for buyer protection! She said the only way to get it is using UPS and FedEx because they have true tracking and to not use USPS to ship international packages!!
IF YOU USE USPS TO SHIP INTERNATIONAL PACKAGES YOU ARE LOSING BUYER PROTECTION - YOU ARE NOT SAFE FROM PP DISPUTES AS A SELLER WHEN USING THEIR SERVICE.
If you want to reblog this on tumblr I have it posted here: http://secretduckie.tumblr.com/post/52240252475/international-shipping-everyone-should-know