EBay - PayPal Seller didnt send item or refund. eBays false & misleading advertising of Buyer Protection, Bid with confidence, full purchase price covered. Gross negligence by eBay and PayPal. I lost over $300. Internet

eBay, PayPal ripoff:
History:

May 10, 2009 - PayPal : Documentation received from buyer
Nov. 14, 2008 - PayPal : Sellers action requested
Nov. 14, 2008 - PayPal : Claim granted
Nov. 14, 2008 - PayPal : Email sent to seller
Nov. 14, 2008 - PayPal : Email sent to buyer
Nov. 3, 2008 - PayPal : Email sent to seller
Nov. 3, 2008 - PayPal : Email sent to buyer
Nov. 3, 2008 - Buyer : Dispute escalated to claim
Oct. 31, 2008 - PayPal : Email sent to seller
Nov. 3, 2008 - Buyer : Dispute filed
Oct. 26, 2008 - PayPal : Email sent to seller
Oct. 26, 2008 - PayPal : Email sent to buyer
Oct. 26, 2008 - Buyer : Dispute filed
 

11/3/2008 15:50 PST - PayPal : Buyer escalated this dispute to a Claim.
11/3/2008 15:50 PST - Buyer : I have not received the Laptop that was paid for. The seller has never communicated with me at any time through e-bay, PayPal or direct e-mail. I have sent several e-mail requests through e-Bay and the PayPal dispute system asking for a full refund and still no response from the seller. I can't bid on another Laptop until I get a full refund. Please advise. Jim
10/31/2008 09:52 PDT - Buyer : Mandy, As of today, October 31, 2008 at 9:45 am PST, I have not received any communications of any kind from you nor have I received the Laptop. I have asked for a full refund with no response or credit shown in PayPal. Please accommodate my request immediately so this does not escalate to a claim.
10/26/2008 13:11 PDT - Buyer : I have not received the laptop paid for on Oct. 10, 2008 the day the auction closed nor have you communicated to me after the auction closed. You have not responded to my "Ask the seller a question", message left Oct. 23, 2008. I would like a full refund immediately.
 
Status Nov. 14, 2008
PayPal able to recover only $200.00 USD from the seller and processed a refund to you.
What happens next?
We're working with the seller to recover the rest of your refund. We'll let you know when the seller is able to full refund your payment.
 
Resolution of Case #xx-xxx-xxx-571, Mon 1/26/2009 5:40 AM - Jim you are screwed!
 
Dear Jim,
 
My name is Demesha and I work for the office of Executive Escalations.
Your concerns were recently forwarded to our office. Please allow me to explain further.
 
As you are aware, you filed the following Buyer Complaint due to non receipt of merchandise:
 
Seller's name: Mandy Madaras
Seller's email: mmmadaras@yahoo.com
Seller's transaction ID: xxxxxxxxxxxxx535S Transaction date: Oct 10, 2008 Transaction amount: $509.99 USD Your transaction ID: xxxxxxxxxxxxx1450 Case number: xx-xxx-xxx-571
 
PayPal investigated your Claim and contacted the seller to request proof of shipment, or proof of a refund completed outside of PayPal to resolve this complaint.  The Buyer Complaint was found in your favor, as the seller did not present appropriate proof of shipment, a full refund or other evidence of a satisfactory resolution.  We attempted to recover
$509.99 USD from the sellers PayPal Account to provide a refund to you on November 14, 2008, however, there were inadequate funds available in the sellers Account to be able to issue a full refund.  Fortunately, your transaction was granted coverage under the terms of eBays Standard Purchase Protection Policy , which guaranteed reimbursement to buyers who had Claims judged in their favor for up to a maximum of $200.00 USD.  
Accordingly, when this claim was closed we were able to credit your Account the amount of $200.00 USD
 
I understand this is frustrating for you and I regret we were unable to meet your expectations in this situation.  However, please understand that, as outlined in our User Agreement, PayPal does not guarantee recovery of disputed funds.
 
Please understand that during the timeframe from when you sent the payment and when you filed the complaint, if the seller had already withdrawn the funds or used the funds to send payments to other users, the entire transaction amount may not have been available in his PayPal balance at the time that the hold was placed.  
 
For future reference, please note that for transactions made on or after October 31, 2008, PayPal has two programs to help protect you:
 
           PayPal Buyer Protection (for eligible items purchased on eBay)
           PayPal Buyer Complaint Policy (for all other items purchased on or off eBay)
 
If you see the eBay.com buyer protection message "Pay with PayPal and youre covered", and if PayPal finds in your favor on your Claim, PayPal will reimburse you for the full purchase price of the item and original shipping costs with no cap on coverage. If the buyer protection message includes a cap on coverage (such as the message on eBay.ca ), and if PayPal finds in your favor, then PayPal will reimburse you for the full purchase price of the item and original shipping costs, up to the coverage cap specified in the buyer protection message. The amount of coverage varies based on the eBay website where the purchase is made.
 
Should you find it necessary to escalate this situation by filing a legal dispute with PayPal, we would encourage you to print a copy of our User Agreement for your attorney , specifically Section 14. Notices to PayPal must be sent by postal mail to: PayPal, Inc., Attention: Legal Department, 2211 North First Street, San Jose, California 95131.
 
I again apologize for any inconvenience caused with respect to this matter. If you require clarification on any of the issues raised, please feel free to contact us directly at executiveoffice@paypal.com .
 
Sincerely,
Demesha
Executive Escalations
PayPal, an eBay Company
 
 
 
As of September 17, 2009 update, Im still out over $300.
So much for eBay and PayPal advertised Buyer Protection, Bid with confidence, full purchase price covered.
Can anyone help???