Yikes...
I would say as long as you have the pictures and the auction proof...I mean if she posted pictures of what she was selling initially then the dispute ends there especially if those original clothes ended up in her future auction.

or you could close your bank account and close your paypal account I would think. Sucks to go to that extreme. I don't really know all the ins and outs of paypal but you've always got those drastic measures that people take when then lose there wallets etc.

Could you imagine selling a high-end jersey on ebay and having the buyer switch it with a retail jersey and then pulling a similar stunt...OUCH! Its an ugly world that we live in.

Good Luck. It doesn't sound like fun at all!

wade