PayPal refund pending....do I return item?

[impty]

So I'll make it brief. Item received was fake. Seller didn't answer me, so I raised a dispute. Seller offered a full refund and told me not to worry about returning item. No refund appeared on my PayPal acc. Messaged seller- no reply. So I escalated the dispute. EBay told me to return the item, but I got a message from PayPal saying the seller had refunded me.

So I have waited 7 days for the refund to clear, but it hasn't yet. It said it was pending until 23/01/13. Rung PayPal and they said it may take until Friday. Friday is the last day I can return the item, and carry on with my eBay dispute.

I haven't returned the item as if the refund comes through I will be out of pocket for the return postage.

Will I actually get my refund? I worry that the seller hasn't the funds in his bank and I never get it.

If I do return the item and show eBay that I have, will they refuse to refund me because it will look like I've been refunded twice?

Currently thinking I will wait until late Friday afternoon and if refund is still pending I will dash out to the post office with the item to return it and persue eBay.

This is a royal pita. Worse that it was something dd2 bought with her Christmas money!

[impty]

So, of course I write this and payment come through 30 minutes later... ebay closed the case.

I'm going for a lie down