I have a long and frustrated history with PayPal.
The above seems to sum things up quite well. After struggling to work out which email address I'd used to register with. (They won't tell you that an email address hasn't been registered with them, only send emails to ones that have.) I hit upon this issue when trying to change the password to something I'd remember. Yes, no OpenID :(.
OK, it's foolish of me to try and change it to the value it already is, but why prevent this change? Or don't change it, becuase it doens't need to be, but don't tell me that. Just say it's been changed and carry on. No unnecessary extra effort.
As a user they should be trying to make everything as easy as possible for me. But it just feels like I run into frustration every time I try and do anything.