The guy has already been kicked off of eBay. You could persue PayPal for the funds and claim "foul"... just because they say they've done everything, doesn't mean that they aren't culpable. In my opinion, PayPal did not respond quick enough in this case.

I've said this in another thread, but I'll reiterate. You should always use a credit card to pay for merchandise. Credit cards will allow you to charge back up to 60 days after the transaction. The cc company would have charged back PayPal.. making them go after this scumbag instead of you.

I don't understand PayPal's unwillingness to go after this guy. He had to register a bank account for the funds transfer... PayPal can go to his bank, while you can't. I think you need to beat down PayPal's doors and threaten them with a lawsuit. If nothing else, I know people you can contact to get your case a lot of media attention. That will def get PayPal moving to resolve the problem.

-- John