It turns out that the very next day after I called the post office in Mercer, WI that I received the payment back from the buyer. I received an e-mail with the payment as follows "hi- i live in upper wisconsin- we still have the pony express here;lol,,, and the workers came from JERRYS KID"S------ long story short-- the item was found at the post office and i have refunded your money- that EBAY refunded me,,, i have the item now!! thanks"
Remember, the Post Master in Mercer said that the package had been delivered for a fact. There is plainly some under handed transactions taking place in that particulat post office and I will follow through with charges with the Post Master General. Mean while we will see how E Bay handles this after threatening to close my account !