It's really a shame how these situations can turn out, but because of the lack of help from ebay/paypal, it would be in your own best interest to ask for the item back and refund the illiterate buyer's money. It's unfair, but ebay backs up the dumbest customers over any merchant! Personally I don't sell regularly on ebay, but my step-father owns a business run on ebay. Over the years, he has found that when there's a dispute that's based on the customer being ignorant (unless a buyer's trying to scam you), it's easier to simply refund the buyer's money. It'll save your feedback from unnecessary abuse, and you'll rid yourself of the annoyance much faster. If there were other offers, email those buyers and let them know the item is available, and once you receive the returned item refund the jerk's money and sell it to someone who can read. Good luck!
