We understand the frustration. eBay did a change again recently..so yes it was first business policies (if you would like to set up business policies to avoid the error, please see the following video - https://www.youtube.com/watch?v=TwBSTHkfKsc) and now ebay is throwing out your first shipping option which is causing ebay to present hydra with that error message. You will be fine to list. Start with a Single Item to test your configuration.
If you prefer not to use business policies, you will have to add a 2nd shipping service to your hydra settings...so go to your hydra settings, and whatever you have for a shipping option, click Add another shipping service and put the same thing again. Save the settings. Then attempt a single item listing. You should be fine after this. See below and also stay connected in the facebook group for updates http://facebook.com/groups/hydralister