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This happened to me as well, only my payment was with a cc. Since the other guy provided the tracking #, Paypal sided with him. However, my cc company had Paypal in a headlock, so there was nothing they could do but return payment. Most banks won't honor fraudulent charge claims, though, so Paypal wins as they won't refund you either. This is why there's always that page that pops up with you try to make a payment with a cc that says, "Are you sure you want to pay with this method? If you use your bank account, it's secure... blah blah" and something to the effect that they're screwed if there's a fraudulent charge and you paid via cc.
Cheers,
JBrobst 
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19:53:18 12/02/07
