Just got off the phone with PayPal.... thanks for that advice... so they state that buyer:bobkats151 is disputing the charge with their credit card company. I told the representative everything that I have stated previously. He thought the situation was ridiculous as well. The representative also stated that PayPal wins most of the cases of this type. I sent them documentation of all info regarding the situation.
I think I will be alright.
Now lets get back to talking about cards.