Ebay shenanigans

Well, this might be the first and last time I deal with ebay. I mean, fantastic site of course, but it definitely causes headaches when you aren't too careful. So there I am with some spare cash to burn and I'm looking for somewhere to spend it. I haven't had an MP3 player in ages. My last one broke maybe about 3 years ago, somewhere around there, so I started to look into ipod touches. But to get to the meat of the story I bid on one on ebay and won (super reasonable price too). Overjoyed I sent my payment through paypal and continued on with my normal daily routines. The next day I checked my email to find that I received a message from the seller. Here he had run out of iPods and didn't have one to sell to me (Awesome, right?). Disappointed, I replied saying I understood and canceled the ebay transaction. I expected the refund through paypal to be linked to the cancellation process, but I was mistaken. I also made a mistake of bidding on, winning and paying for another iPod touch after canceling the first transaction. So I'm stuck here with an overdrawn checking account because the two charges came through at once. I frantically tried to contact the seller telling him of the manual paypal refund he has to follow through with. After not hearing from him for a day or two I opened up a paypal dispute and at this point I'm facing some lovely 37 dollar fees through my bank for the overdraw. So here I am still, waiting to hear back from this seller trying to avoid more fees from the bank. 'Tis most lovely.

So what I want to know is, if you have dealt with ebay, how were the majority of your experiences. Ever have any terrible experiences like this?