Vince, you should stop sending him email messages directly (not through ebay). You can go through the customer support section and open up a case, if you don't find your specific situation you can call ebay customer support and explain the situation. You should end up getting your money back in paypal and hopefully action taken against him.
Also, just to comment on him, what a wad. If he at least sent you a message that said "I'm not selling the item at this price, sorry" that would be one thing. But what's up with his lame lie responses directly to you saying that he's following ebay policy, etc., and he hasn't even refunded your money. What a total loser. Leave meaningful negative feedback, after he responds, make sure to leave a followup feedback.