I think the new defect system is still very defective. I got a new defect yesterday for a neutral (for a cancelled transaction), yet if I try to run a report, it tells me I don't have any new defects in the current period. I've never been able to run a report.....even when I got my first defect way back when.

I think eBay is now able to remove defects, so for the non paying one, I'd give them a ring and ask them to remove it. It might take a few calls, but they should remove it. Their policies state that a non payment means no transaction took place, therefore any feedback or defects relating to that non transaction are removed.

If you don't have any luck with the first call, ring back and ask to speak to a surperivisor. I would also be inclined to have the page open where they talk about reasons for feedback/defect removal so you can quote it to them.