OK, I bought some Virtual Money (Like for a game, fake money.) from this dude via paypal...I bought about $240 worth...I opened a dispute..can paypal do anything to this dude?
Speak to your CC company and see what they can do to reverse the charge if paypal doens't help in anyway. This may get you banned from paypal tho, so think it through.
Paypal helped me when I was cheated on Ebay for about $50. I got $25 back almost immediately and then the other $25 after about two months. It's quite easy to do at the Resolution Center on Paypal.