Hrm. You're lucky that all got straightened out.

I have to say, as someone who ocassionally sells on craigslist - that would be a reason for me to not allow someone to pay via paypal. I know as an ebay seller paypal resolution is heavily slanted towards the buyer. "The box was empty when it came" or something like that is a charge that it's really hard as a seller to dispute. And if paypal resolution goes through, it takes the cash from the sellers bank account. Which can be nasty depending on what bills you have going out.

I never thought of disputing an in person craigslist transaction via paypal though.