Thank you for your reply Sheepy. Good to see you again 🙂

The amount was only $17.45 a small amount but my money nonetheless.

I will see what comes out of the email I sent Paypal today attaching a printout of the Positive Feedback comment she left for me on my feeback page. I did email her also and give her a small piece of my mind. If Paypal still refuse to reconsider I will lodge a complaint against Paypal with the Financial Ombudsman as I know I have been ripped off.

No, the buyer did not return the item so she probably wasn't asked to do so by Paypal.