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Judge DredTwo messages back was reference to a seller concerned about a charge back from a credit card company on a high ticket item.
I believe that a person that uses paypal authorizes paypal to be the company that settles disputes regarding credit card charges.
Also consider this, if the seller can prove that he sent something (anything I guess) then things get a bit interesting as far as settling the dispute.
Something else to remember about paypal and ebay both - they always encourage a buyer to try to work things out with the seller. The only key is to remember that there is a time limit with which to work out your issues. You can pretty much forget about having ebay or paypal assist you if you exceed the time limit.
Guess who thinks paypal stinks and guess who thinks ebay should emphasize their time limit when requesting that a buyer "work things out" with the seller before filing a claim.