you sent paypal so file a dispute with CC company and paypal.
i got scammed buying Universal Studio tickets on ebay for $177. found out tracking his ebayid 5 other people got scammed from same seller (some for $400+), he immediately took money and bought something, then closed his email account and ebay account. obviously a scam. paypal and ebay did Nothing for me.
filed dispute with paypal, who told me to handle with ebay.. ebay then told me to handle with paypal. both did nothing, so filed a dispute with credit card company, and to my surprise months later i got my money back. Just don't give up.
i can see both sides to a story, it might take a little while to send stuff out but i usually try to have things sent within 48 hrs. best thing i can tell you is to file with paypal just for formality (watch dates, they don't let you less than 30 days, but no greater than 90 days or something) and then refuse payment with disputed claim on your credit card. best of luck to you.