Apple iPod nano 2nd Generation Silver (4 GB) MP3 Player

I won the bid for the above item, an Apple iPod MP3 Player on 8/4/07. As requested by the seller, payment was made immediately. After several emails that I sent to the seller, she emailed to say she had been ill and in the hospital; but that she would send it out the next day express mail. I did not receive it and contacted her again via email. After a few days, I received another email from her saying she had been hospitalized and would get it out express mail at her expense. I have waited over a month now and still have not received my iPod. I checked ebay.com and she is no longer a registered user. I have filed a claim with PayPal to see if they can locate the seller and get my money returned to me. She had already left me positive feedback because I paid as asked. But I cannot leave feedback for her as she is no longer a registered user of ebay.
This has been the first problem I have encountered using ebay, but it has been frustrating at best. I feel that the seller was not honest with me to say she wouldn't be sending me my item.
I am hoping that the dispute I filed with PayPal will come to a positive end for me.I recently lost my job and cannot afford to lose $153.26 which is what I paid. Irregardless, I would like my money back and don't feel that this person should be allowed to be a member of ebay. It is people like her that makes users not want to purhcase an item. I have bought many things and always received my items without problems.
Anything you can do to expedite this dispute would be greatly appreciated.
Thank you.