The seller has never sold anything before, so probably didn't realise that starting an auction low was a bit of a silly thing to do. Unfortunately, as mentioned, you can't force him to sell it to you. As for paying, the way eBay is now regarding their paranoia, the only way you could get the sellers address from them was to pay first. If you hadn't paid and the seller tried to send you his address or phone number, you both would probably have copped a suspension for a week.
Were you able to get your money back from PayPal? You could try and item not received dispute through eBay. Escalate it when you can. By the seller not cancelling the sale to give you a refund, they will still pay fees on the sale, which will be around $33.
I would try one more time contacting the seller and tell them that you understand they had never sold anything before, so you are willing to cancel, but THEY need to send the cancellation request. They can do this by going to the item on their selling page, click on the drop down on the right and then select cancel sale. Then follow the prompts (tell them all this in the message). You should get an email when they've initiated it asking to confirm if you've got a refund. If you click no, the system should sort it out and give it to you and then you can accept the cancellation (or something along those lines).
If they keep ignoring you, go the item not received dispute. Check what the ETA dates are in your purchase history. As soon as the last date has passed, you can open a dispute. OR, you could try opening one with PayPal now. Just be aware though that you can open an eBay dispute and if that fails, you can open a Paypal dispute, but you can't open a PayPal dispute then an eBay one if the PP one fails.
If all else fails, you've paid with a credit card, do a chargeback through your back. Please come back and let us know how it ends up. Good luck with it all.
