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bcornellhttp://www.antiphishing.org/consumer_recs.html - explains how to protect yourself from potential online fraud. eBay also has tons of info on privacy and account protection.
There are many 3rd party companies (Andale, Vendio, etc.) that are used by sellers to do their fulfillment. None of them should ever ask for your eBay password.
This seller sounds like he's merely obnoxious, not a scammer.
Bill