Ok, I sold a regular Nintendo system on eBay a few weeks ago and the buyer purchased insurance.

Anyways got I got an e-mail saying that the system wasn't working right and the guy even sent me some pictures of it, the screen had some blocks on it that weren't working, so I told him to send it back and I would refund the money (everything has gone smooth real nice guy etc)

Ok, now I get it back and I hooked it up and now I can't even get a title screen to come up, its just all numbers and jumbled garbage. Now before I sent out this package I had a brand new 72 pin in it and it was working fine... now nothing.

The box was pretty beat up and looks like its been throw around or something. Should I just try to fix the system, send the refund to the guy or should I go to the Post Office and report that the package was damaged? Does it seem like this would be the cause of it not working anymore?

What should I do, I haven't ever had to use the insurance through the Postal Service so I don't know what to do.

TIA.