Ok this one is complicated...

[SpinMeRightRound]

I posted a parcel to the winning bidder and used the address that I was given via paypal.
I have now had the buyer saying that this was the wrong address after the parcel was posted on the 3rd of Nov.

The address given is the next door neighbour and they don't have the best relationship. So they could have received but unwilling to deliver to the rightful owner next door.

Where do I stand?

I have POP but for the next door's address, so I can't see Royal Mail compensating me for a lost item.

I can't see what I can do...

did you send it recorded?

No, obviously now wish i had!

I'd tell buyer that you will send them the proof of postage stating that its gone to their neighbour then if the neighbour refuses to give it to them, they can use it to report it if they choose to.
Also advise them to correct their paypal address!!
Up to them to get parcel now, not you.

WHY is the paypal addy the next door neighbours address?

To clarify, do they have their neighbours address on their paypal or did you put the wrong address my mistake?

covered by paypal as they only cover you if you send to paypal address...
Nothing much you can do to be honest
You have done your bit

I would message the buyer along the lines of

Dear...., Thank you for your message. I posted your item on the 3rd Nov to the address given on paypal (thus providing me with seller protection)
I am sorry to hear that you have made an error regarding your address. I do hope you are able to make arrangements with your neighbour to collect the parcel from them. I hope you enjoy your purchase and I thank you for your business. Kind Regards Ms SpinMeRightRound

They have their neighbours address registered with paypal.

I sent it to the address that I was given.

She said that they have updated the address with paypal but it still send out their neighbours address.

How was I to know it was wrong when according to paypal it was a verified address?

Excellent

Thats a great way to put it sixlostmonkeys, thanks

At least I now know that i'm covered if she opens a dispute.

Yes, they are being ridiculous. How are you supposed to know that is not their address? If she knew that paypal was 'sending out the wrong address' she should have made damn sure she had sent you a message.

you won't be covered by Paypal as you didn't send it recorded delivery.

give a refund and chalk it up to experience.

don't give a refund! let it go to dispute if need be.
You have proof to forward to paypal that they were aware of the error before and waited until it was too late to inform you.

I wonder if they do this often so see if anyone falls for it?