Obviously you did not defend your corner strongly enough during the initial dispute phase. If you gave Paypal sufficient reason why the item was as described, I would have followed my response up with a phone call making it very clear that if they found in the buyer's favour after them admitting they just did not know how to use it I would be taking it further.

At the end of the day you will only be out the cost f original postage and if this is the first time you have had to shell out in over 1,000 sales it doesn't work out at very much does it!