She's saying that her postal service won't declare the item lost and pay the insurance because they claim the USPS delivered, though the USPS site (and staff) state they didn't.
Thanks again, everyone. I did file an INR to protect myself, but haven't elevated to having e-bay resolve it yet because I think the seller is honest and USPS screwed up (shock!) so I'm hoping she can file for a claim, reimburse me, and at least no one is out money but just time and hassle. If she doesn't do anything about insurance, etc. in a week I'll bump up to having e-bay customer service resolve it.
I hate that this happened because I fear sounding like one of those buyer horror stories you all fear... but at least the USPS tracking info supports that the package is lost, and I know my local post office never received it or send it for delivery.
I just want to say how grateful for the time and support you ladies have given me. I know it isn't the world's most important or complex problem, but I want to do what's right by the seller without ending up out a big chunk of money (to me).
It could take a week or 30 days for an insurance claim and you want to make sure you are protected. I would give her the week and then escalate. Ebay will have her reimburse you for INR then she will be reimbursed when the claim pays out.
Linda