Yes, it's fairly common for foreign nationals to live, work and attend school in the U.S. but maintain financial accounts in their home country. In the past, I've had several European customers who travel extensively and may even have a second home in the U.S. Would you require them to open a new Paypal account and bank account for each country they happen to visit?
Since your buyer has a U.S. address, she can bid and buy from you. However, you need to change your Paypal setting to allow payments from non-U.S. accounts. Of course, you are paid in USD. Doing so has no effect on foreign ship-to addresses -- on eBay, you can still exclude buyers who do not have a U.S. ship-to address.
By the way, if you ever want to use the GSP, you must allow Paypal payments from non-U.S. accounts. You also may be losing a lot of business from customers who hire mail forwarding services or those who commute between Canada and the U.S. or between Caribbean islands and Florida.
Bottom line: Be happy that you have a repeat buyer and allow her to pay. After all, Paypal has become an almost universal means of paying for goods and services!
~~C~~
My Glass Duchess
Quoting Mom: In polite society, "hey" is for horses.
