Here's a big f**k you to PayPal and Ebay.
So the ebay protection stuff is a load of crap. Just another lie to get you to use paypal (which is basically owned by ebay) so that they can take more of your money while you buy online.

I bought something on ebay, a motherboard, and it was DOA. I contacted the seller who said I should send it back which I promptly did. Since I did this the seller has ceased all contact and isn't sorting this out. I figure I'd put in a PayPal dispute claim because it's meant to be a secure way to shop online so that you don't get ripped off using ebay. Well after wasting a few weeks waiting for the seller to respond to my complaint I raised a dispute with PayPal, who send me an email telling me to post the item back. Despite the dispute history saying that I had already posted the motherboard back.
Now here's the kicker. PayPal won't go any further with the dispute until I send the item now. Which is difficult to do when it is already sent. Now the only way PayPal will give any money back is if the seller says they ripped me off. Basically not going to happen. Raising a dispute also removes my ability to leave feedback for the item.
Update: The official response from PayPal
The seller has indicated the item was not received in a reasonable amount of time. In situations like this, we expect the seller to resolve the issue with you directly.
We consider this case to be closed and will not issue a refund. We strongly encourage you to work directly with the seller to find a resolution.
Let this be a warning to anyone who thinks they can get anything back from "PayPal buyer protection". IT'S A LIE!
Ebay is not a "safe way to shop online"!Don't believe any of their bullshit PR.