Oops, missed your last post. Good thing you got signature confirmation. Unless Paypal instructed you to return the bag, they can't really go back after you for the money they refunded. (though it was the right thing to do to return it)
thanks for the replyHas Paypal told you to return the bag yet? Make sure you follow their process, just in case something goes hinky later. I've heard other people say to make sure to wait until Paypal tells you to return it.