yeah - make sure you take a screen shot of his listing with the return policy. contact ebay and paypal(if you used it). They have a buyer's guarantee up to a certain limit that applies to most purchases.

Doesn't matter what seller says about the gift if you send it - s/he had a clear return policy. and yeah, tell the seller you are contacting the police (whether you do so or not) and will take the seller to small claims court. if you really want to press, if that seller is a big seller, contact the IRS and suggest they look into his/her finances to report proper taxes.

good luck