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Do you have a receipt from the shipper you used? Even if he didn't pay for a tracking number, whoever delivered it should be able to tell you whether it was delivered or not. They should be able to show that you purchased a shipping label to his address. Forward the email along with a copy of the message source (ip address, servers, ect.) to paypal. Stuff from the shipper could just show you mailed him a brick but the email might convince paypal to investigate this further rather than take someones word and call it a day.
What idiot gives you their address, steals something from you, lives in the same state, taunts you, and not expects someone to retaliate?
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