So in case anyone missed my post in the ebay forum, I just wanted to warn ebay/paypal users. I sold an item on ebay to a buyer in the UK. She did not pay for the optional insurance. I shipped the item through USPS Global Priority which did not offer any tracking. The buyer never recieved the item. Paypal is now forcing me to refund the buyer, even though I have proof of shipment, because I need proof of delivery.
So read your paypal user agreement! Make sure you have tracking on all your items, even if the buyer only wants the cheapest shipping possible, because you will be held liable!