PayPal is odd about this.... I sold someone a stereo and they bitched it didnt work (which it did) I agreed to a partial refund of the pruchase price pending I received it back in the mail. PayPal closed the case, instantly refunded the guy his money, and I never got my stereo back!
This time, for the Dreamcast Fiasco, I offered NO refund and completely filled the reason block with the rationale. If an UNOPENED/UNTESTED/No Returns accepted listing gets me... Im going to be pissed. PP has a BAD habit of just giving the buyer all the money back, including the money used to actually ship it!