almost right.. 1st
take all the money you have out of paypal before doing a chargeback or you will lose it..
2nd
call your credit card company and explain to them that you purchased an item of
ebay and it was defective and the seller refuses to refund you even if you return the item.
3rd
If and when the cc company refunds you it will put your paypal in a negative balance. (this is why you removed the money if you don't paypal will use what ever is in there to go towards the refund)
4th
send item back and provide paypal with tracking number.. if they seller still has money in their account it will then be refunded to you once the item arrives.. if they don't have money your account is ****ed and you will need to start another one
but before you do this call paypal and see if they have money on hold in his account... if not then do this process and if he doesn't have money available returning the unit is up to you