What do I do now: Payment gone, item still in person's possession!??

[nikorami]

Well, unfortunately I trusted someone and they basically scammed me.

I sent a golf putter to be refinished on June 30th and paid for the service.  It is now Jan 2012 and I have no putter and my money is gone.

The person rarely responds to me and when he does it is always with an excuse.

I opened a dispute, but he still has my putter.  Will Paypal help me with recover my item or cover the items cost?