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T ESorry to hear about this horror, Bobby. You may have written details already above in this thread, haven't had enough sleep so maybe I missed it, but were you shipping to a confirmed address? Did you get Signature Confirmation?
I use paypal, I'm a second level power seller, been doing this since early 01. I only accept payments from confirmed shipping addresses. 90% of my money comes through paypal. I was ripped off once, I did not have delivery confirmation on the order (I had insured it and stupidly thought that was enough), so paypal took buyer's side in claim.