That is what friends and fellow forum members are for: to make your life a better in matters like this.
I would just openly say that $350 or even $500 is not worth opening a paypal dispute over, unless it is the last transaction with other members (or even dealers) you wish to make in the hobby. Reasonable men solve problems together, not point fingers at each other. What has happened in this case has been unfortunate, and to help both seller and buyer, I am willing to donate some money to help mitigate the situation. Just hit me up bro when you are ready.
Lets not blow this out of proportion, and contain the problem wisely instead.. Its only a watch guys, one which likely would be flipped again to another member some time down the road. Lets be thankful that this is not a unique, highly modded, franken, or high value piece where the loss would be a lot more than money..