Heya guys...
Thanks for all the inputs regarding this nice little clusterf@*$
I contacted Paypal and E-bay, checked their rules and such, and sounds as though the "legally binding contract" thing is the way to go. If I charge him for my fees, he can dispute it, and say I stole money from him. If I give it all back (his money), I'm out some funds.
Easiest way to solve it is send to him what he paid for. Here's a copy of the letters I sent. Should've been one message, but I ran out of E-bay messaging space on the first one:
Message 1:
Sir,
I've contacted both E-bay and Paypal about the issue. While I want to be fair to you, the buyer, and avoid putting you in a bad spot...you've unfortunately put me in one. Bottom line is, the bidding, winning, and payment for the auction is a legally binding contract, per the instructions on both the E-bay and Paypal sites. While I can somewhat sypathize with your issue (albeit an incomplete and confusing explanation), the agreement was made, payment was received, and your item is ready to be shipped. As was explained in the auction listing, the funds from the sale of my cues were dedicated upon the sale. Those funds are now spoken for, and the cue is yours. Additionally, I do not feel comfortable with sending you a refund, minus my costs...for fear of future issues regarding the sum provided to you.
To this end, I am sending the cue to your Paypal verfied address...insured for the full amount paid, as well as required signature service.
Kind regards,
Mark"
Message 2:
"Sir,
As a suggestion, you might want to consider listing the cue on E-bay yourself. You stand an excellent chance of getting the money you spent back out of it...perhaps even more.
I hope you understand how I arrived at this decision, and please know that there are no hard feelings, at least on my end, about this awkward situation.
Kind regards,
Mark"
Wonder how this will fly??!!

Time will tell, I suppose.
Thanks again, ya'll.
Mark (Rat)