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Yeh, definately report to your police. They should be able to get things rolling like jaggy said.
And it isn't really paypals fault. They offer a service, and will at least try to help if somebody scams you using their service. It wouldnt make sense for them to just pay you when it wasnt their fault you got scammed. Paypal is IMO the most secure and safest way to send money. It is a heck of a lot better than doing a money order.
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Current guns
Blue DM5
Blue to Black Lotus Cocker(in the process of building)
Black 2k2 Cocker E2'd and MQ'd
Blue Spyder e99
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