Hmmm strange u didnt escalate it further, allowing someone to keep their money AND your item is FRAUD, take it higher if PP doesn' cover you....but they should, they're obligated to by LAW.
I've used EB+PP for aaaaages, and had mishaps, people change their minds, claims etc etc and in every case i got my $$ back, they got their $$ back....maybe i know how to use it properly 
Perhaps the older PP mishandled things b4 Ebay bought them? but it shure as f**k works for me and everyone i trade with. 
Many of my work collegues and their partners spend a lot of time wheeling & dealing, all their claims work too.
MM.
Like I say - until it goes bad for you it doesn't hit home....
In the case of the printer the guy offered to pack it and sent it if I paid him $800 to pack and send it (and it had to be by bank deposit - hahaha) and PayPus agreed with him! I went to the police and guess what - "it's a civil matter"
Don't worry - they will bite you...........
I might just round up 10 or so spectacular cases - ones where I have solid documented proof and start a thread specifically about how shonky an outfit they are.......it would open a few eyes I can assure you. After losing over 10K with PayPus I gave eBay selling away.
