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Well I just got contacted from the company the scammer bought stuff off (they had my email from the paypal transaction and paypal had emailed them)..
They asked me to explain my actions, am I committing fraud? Of course I explained I was the one ripped off, and they immediately cancelled the online access (they bought access on a MMORP game) and said they would refund the transaction..
So just waiting to see it come back on my card... I am still not sure how the person got my paypal login, only thing I can think is on holiday I have used internet cafes (a fair while back) and someone waited a while and used it from there (keylogger)..
They also tried to break into my ebay account, but ebay isn't as stupid and locked the account as I had logged in in Australia and then a few hours later in another 'suspicious' country... So at least that account I could reset the password and get it all sorted on the phone with ebay, without any damage done....
Scanned PC with Kaspersky, Bitdefender and Nod32 and no spyware detected from any of them..