Wolf_SER, sorry to hear that you got ripped off.
I too got ripped off a couple of years ago (he knows who he is) I bought a supposedly Built SR20DET, for 1100. Turned out it was a DE+t with custom Arias pistons, which one was blown to hell. I tried to get my money back but the guy was being a prick, eventually he told me to stop calling him, or going to his house to talk 1100 dollars worth of scrap metal that I had laying in my garage. He promised he would open up a shop and eventually fix it. Yeah right. But I was dumb and stupid and took matters into my own hands, I ended up paying 3X what the guy owed me, all with legal issues.
Long story short I recommend any one when purchasing anything over 100 dollars to keep a paper trail, it is vital part especially when shit hits the fan like this. I committed the biggest mistake in purchasing; and gave the guy cash money for his "word" of a good engine. I too was mislead into thinking it was a good deal.
I'm glad you kept all the PM's and most importantly that you made the transaction through pay-pal. Fight it!, but do it smart and Legally. It will pay off eventually.
I hope everything turns out well for you Wolf. I hope sorry SOB's like those never get to rip any one off ever again.
Sorry for getting off topic.