Starting a PP conflict won't do you any good. Their customer protection service is only good for 45 days and only if you used eBay. Best thing would be to use your credit card when paying with PP. It's much easier to recover your money. You make sure you don't have any funds in your Paypal account, then you call your credit card company and tell them to charge the money back. They don't even ask any questions.. When Paypal contacts you, you tell them you ordered something and the sender didn't send it out. Then they ask the sender to provide any proof of sending anything out to you, which of course he can't.. Worst thing to happen to you is that your Paypal account will be closed down, but at least you got your money back.
Having said that, I'm sure Joshua would have resolved the matter (rather later than sooner).