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First ever problem with eBay and want to start a dispute

I bought an item (paid instantly with PayPal) from a seller on eBay that was described as 'brand new' - when it turned up it was obviously used and therefore was not what I was after.

On 19/10/07 I emailed the seller through eBay asking if I could return and receive a full refund (preferred option) or if that was unacceptable I would accept the postage refunded (£3.50) and £4 off the selling price of £14.

I got no response so emailed them to their ISP e-mail address on 28/10/07.

I received a reply dated 29/10/07 stating that they had not been untruthful in their description and I had not been missold and that they considered the matter closed.

I replied on 30/10/07 to try and clarify my problem and ended by saying that I would raise a dispute if no reply received.

To date - no reply.

Thing is I now want to raise a dispute but have become confused as to whether I raise it with eBay or PayPal?

Can anyone gently guide me in the right direction and outline what happens (for both parties) once the dispute is opened?

Cheers,

Bubba

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