Jenn:
I'm really sorry to hear this.  :(  Good luck.  
Paypal was actually very good to me in the past- 
I don't know why they are so shitty now.  In the 
past, I had a situation where I sent a paypal 
payment, and the seller never sent me my item.  
After a couple of months I alerted paypal.  The 
seller could not prove he/she had sent the item 
(because he hadn't) and they gave me my money 
back.  I think it's terrible because now that 
internet fraud is more common it's like paypal 
doesn't want to protect people anymore.  Yet 
they're owned by ebay now so I don't know why 
ebay would be supportive and paypal not.  Good 
luck, and I hope these warnings are beneficial to 
people - I certainly am starting to pay attention 
to them.