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RESOLVED
I sent a support ticket, two days later someone from support gave me URLs where I can add funds from my (UK registered) Paypal to Steam even though I live in The Netherlands. This only works doing it in an internet browser and not the Steam client.
To buy games from store: http://store.steampowered.com/?cc=GB
To add funds: http://store.steampowered.com/steamaccount/addfunds?cc=GB
Edit: I think the URL ending in GB stands for Great Britain so if you're from another country, you might want to change that, I think. I am not too certain if it is correct or not.
Sorry to hear you having this same problem not being resolved. Maybe you can google for different links/URLs that may work (also be careful with that). Or you can contact Steam support and hope the wait isn't too long.
http://steamcommunity.com/discussions/forum/1/612823460272154632/#p2
Most of us have tickets open, mine's nearly a week old. Others more.
Cards is the best way to add money, very simple, just redeem code, and your ready to go