Had this happen right before the holidays, thankfully for a small amount of money...PayPal came through--if you're claim is legit they'll give the sheister a chance to make things right, then they'll yank the funds back from them and refund you.
I 'think' that process was 2-3 weeks. I too changed the way my transactions process--there's another kicker--when they refund you, PayPal will have it sit on their end for a while before you can actually put the $$ back into your own account