Kenneke Communications Refused to refund for services they did not perform. Albany, Oregon

I sent out an email asking to transfer 8 tracks of instruments off 3, 1/4" real to real tapes. They said ok, for $50. I mailed the tapes that included hand written instructions on what I wanted done, which was very clear to understand. I got the tapes back with one CD that had 3 tracks on it with half of the tape recorded of each song.... This is not what I wanted done. They just recorded the music off a real to real player, and not a recorder which is what you would need to take the 8 tracks of insturments recorded on the tape. They did not respond to my email, and I filed a claim on Paypal, and Paypal could not do anything, and they Kenneke said "We are reporting this as theft of services, we do not tolorate fraud, dishonisty, or just plain old stupidity".  I emailed them and said I would take this to the fullest extent of the law. I know its only $50, but companies run like this should not be ripping people off.