Its true,paypal doesnt refund if seller acount has no funds.
June 2008 I've bought a mi3 topdeck from this same seller,3 weeks later I was still wainting to receive it.I had to open a paypal dispute and some days after paypal closed this dispute argueing lack of funds on sellers account.
I keep emailing the seller and I had my topdeck shipped.
Pure luck,from what I can read from previous posts.
Sorry for you guys that are in trouble with this seller,hope you have your money back or goods shipped.