My intention isn't to have this explode but to expose a possible threat.

Yes, it appears to have been resolved. Paypal has shown that Robert has returned the funds into his account and it has been held. It's just a matter of getting through the red tape and working with the credit card company to figure out the details.

Jones - I can lay down the facts, but I'm concerned that this will get out of hand. There are two scenario's, one is that I was being ripped off but through pressure and investigation Rob decided to change his mind.
Scenario two is that for 1 month he has no access to computer and the shipment went missing.

Both are pausible.

Thank you everyone for your help (both forums)