Manny,
Until you get a refund from either eBay or Paypal, that kit is still yours. The fact that he's listing it for sale, has your money and hasn't shipped, constitutes theft...possibly fraud. You may want to contact either the Seattle police or the FBI since it was a sale of over $1000 across state lines. You also may want to send eBay the link, since they didn't seem to be too helpful when you contacted them.
Good Luck!
Bob