Hi!
The problem with listing in the Adult categories and having PayPal as a payment method is on eBay's site, and they are in the process of fixing it. This happens whether you list directly on eBay, or through a 3rd party (such as Auctiva.) There are several postings on eBay's discussion boards that you may want to check out in the meantime.
Hopefully they will post something on their site to let everyone know when it will be straightened out.
Thanks!
Rebecca