In a large bowl mix coconut, chopped pecans, condensed milk, and vanilla. Pour melted margarine over the mixture. Mix well. You may have to use your hand to mix. Form into balls; place on a cookie sheet and place into freezer until frozen.
In a double boiler, place paraffin and chocolate chips and heat until melted. Take frozen coconut balls by sticking a toothpick in each, and dip into chocolate mixture. Place chocolate covered balls on wax paper until chocolate hardens. Store in airtight container. Separate layers with wax paper.