Probably not going to be worth it - this is an item I sold that was somehow damaged in transit (http://www.styleforum.net/t/305608/paypal-dispute-w-buyer-what-options-do-i-have#post_5549231)
I'm better off giving the guy a partial refund and not bothering to try to fix, then sell a the repaired / damaged item.
when I was regularly selling on ebay, I always found the best solution was to eat your losses and move on. You can spend a lot of time, energy and grief trying to prove your case and maybe have paypal find in your favor or you can just move on and make up what you lost here on something else. Ebay is what it is and sometimes you are the baby, other times you are the diaper.