I might be incorrect, but I'm pretty sure that even Canadian addresses can be confirmed through Paypal. If his address is confirmed at Paypal and you ship via delivery confirmation I think you will be ok under Paypal's policies. You would then be able to provide proof of delivery to the address matching Paypal’s confirmed address, a signature is not necessarily needed, only delivery confirmation. If his address is not confirmed with Paypal I would ask them to confirm it before you ship it.
The other option you have is to submit to cancel the transaction. According to Ebay’s policies “Possible reasons for canceling the transaction are that the item is lost or broken, you made a mistake when listing the item, or you can't complete the sale.” While it’s not the greatest solution, it might be better than risking loosing any significant amount of money.
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