Everybody will eventually be hit by Paypal no matter how honest and serious, you are.
I see myself as one of the most honest people on this planet and I was also robbed by Paypal more than once.
Paypal calling themselves safe and secure makes me laugh.
The same goes for their buyer and seller protection. Neither works.
If you google around a bit looking for Paypal problems, you will be scared.
No other company have that many hate-sites.
I have started using Moneybookers instead of Paypal. It works pretty much like Paypal, only without the risk.
I still have my Paypal account but I cannot recommend using them anylonger.
Unfortunately, in some countries, you cannot list on Ebay without accepting Paypal.
That's too bad and will, no doubt, cost Ebay a lot of sales.
I have started using Bonanza instead, it is not an auction site but works wonderfully.
Never change the item of an Ebay listing and never do any "side deals" when the payment
is related to the Ebay listing and done using Paypal.
You will lose.
Paypal don't care what you agree with the buyer, they don't read any of the words you write to them in the disputes.
See if you can make Paypal ask the buyer to return the item for a refund.
This is Ebays own (!) forum, the Paypal section.
If I was Ebay, I would have a bad taste in my mouth.
Paypal (and/or Ebay) even planted one or two moles to soften things up a bit, you will easily spot them:
http://forums.ebay.com/db2/forum/Paypal/97
Martin