Bump for a great member! Even though I haven't purchased anything from this seller I have only heard great things.
I too was the victim of PP fraud on two separate occaisions. The exact same thing happened to me that happened to you. Someone purchased 2 X3 premods with 400GB HDs and X3 Control Panels that I had configured for sale. The two separate payments totalled 1570.00
The order came through on a Friday. I shipped everything Monday morning. Monday afternoon I logged into my PP account and saw that I was negative 800 and some odd dollars due to the two payments being suspicious.
I did everthing PP requires for seller protection. Shipped in a timely manner, shipped to the address that was listed in the payment, used UPS tracking, and also because products were valued at more than 250.00 I required a signature. Two days later the packages were delivered (UPS would not allow me to reroute the packages unless there were two failed delivery attempts) and he actually signed for them. PP released the money back to me since I was protected under the seller protection policy.
I thought it was over until exactly 30 days later again my account was deducted for the same two purchases. It seems that the true credit card holder had processed a chargeback with his CC company stating that his card was used fraudently for the purchase of the machines. (even though the machines were sent to the true billing address of the CC holder, which it was probably either him trying to scam me or little Jonny got a hold of mommy and daddy's CC's) I thought it was absolutely ridiculous that I had to resubmit info again being that these exact same charges had already cleared through PP Seller Protection, and if they cleared once why wouldn't they again. PP apologized and assured me that my money should be returned asap, but that the seller protection dept and chargeback dept's do not co-exist together and therefore it didn't matter that the funds had once been released back to me.
It took me over 2 weeks to get my money back. I emailed and called PP everyday until I finally got someone who took care of me right over the phone and got my funds released back to me (even though I was assured nobody could do that in the previous dozen or so calls I made). It's been over 60 days now and I still can see the dispute in my dispute/resolution center in my PP account. PP is not all there to be quite honest. I never used that account again for fear that they would find another way to hit me for the funds again. Good luck in getting your issue resolved. Keep after PP. If you did everything within the guidless of seller protection you should get your funds back no questions asked.