^True, If you ship to an unconfirmed address (or one that is not marked as seller protection eligible on the transaction details page), you are asking for trouble.
A split payment in this context is when you sell something for $100 and you agree to a partial payment of 60 and another payment of 40 to be paid a week later. The entire 100 would not be covered by PP. This is different than sending 100 all at once combining use of both a PP balance and a cc or bank account. That would be considered one payment, I believe.
Also, I think the thread should be nominated for Best Title for a Reference Thread in the Alleged Scammer Category.