The fact that he sent money to the wrong email address means that, as far as PayPal is concerned, he hasn't sent you any money at all. File a complaint with PayPal and explain that the item is not as described. When he shipped you the item, did he send it by tracked courier? If he did not, then you actually have the upper hand because he is required to prove that you received the item by providing a tracking number. At least, that's the way it works here in the United States. Any emails that show correspondence about the item do not count as proof that you even have it ( I don't know why, actually, but that's the way PayPal operates).
I would also file a compaint with ebay and explain that not only is the item not as described but that he is charging PayPal fees. In this case, your emails are of value because they reflect his refusal to refund the PayPal fees, etc. Keep all emails that he has sent you so that, if necessary, you can submit them to ebay, along with the header information. Technically, even if you loved the camera and wanted to keep it, he would be required to refund the PayPal fees because he is not allowed to charge them, according to ebay rules.
One thing: Do NOT engage one of ebay's "Dispute Resolution" people. That is a total waste of time because the person that you end up paying to negotiate does not work for ebay and has no jurisdiction (most people don't know this). Also, anything that they find they are not allowed to report to ebay for some dumbass reason. Basically you end up paying for nothing because, based on my experience, anyone trying to rip you off knows that the negotiator has no real power and it ends up being just a delay tactic that costs you even more money. Just file a complaint with PayPal and ebay and get on with it. You've given this guy as much understanding as he deserves.
You pay fees to both ebay and PayPal. Now let them work for you and earn their money.
Roger
http://www.moviestuff.tv