>>That is true but as stated before you will be required to ship the item back.<<

Not necessarily. Sometimes in a dispute eBay will simply pay the refund but allow the seller to keep the original paid funds. This is a recent development, as of Summer '09, and I'm pretty sure this only happens when both parties have considerable eBay history and if the amount is not large. I just had this happen, as I posted above. If eBay has allowed the seller to keep the funds but refunded your money, you're under no obligation to return it. In fact I wouldn't.

http://pages.ebay.com/sell/July2009U...index.html#3-2

middle of the page:

"Offer an option to call eBay in the event buyers and sellers can't reach resolution themselves. We'll be taking a more active role in ensuring transaction problems are resolved and, in certain cases when we determine the seller was not at fault, we may refund the buyer at our own expense."

There are also cases where eBay/Paypal will 'force' a refund from the seller's Paypal account, including shipping one way, then they'll send you a prepaid label for the return, but that may be superseded by this more recent policy.