What should I do about an item-not-received dispute on Ebay?

Yes Western Union can force you to give the money back and legally you have to. It is all part of the Ebay agreement that you sign up for though I don’t think anyone is going to spend the money to make you do such a thing. Was insurance an option?
I never ship overseas.

if you can prove you mailed it, then they need to prove that they never recieved it. Otherwise they could just be trying to get something for free. I see a lot of members who have it stated in their listings that they dont ship to germany. Personally I never sell or buy internationally

Did you get tracking info from the USPS?

I didn’t get a tracking #. There is a customs form # on the package that lets them know when It was mailed. This has happened to me twice now with foreign buyers and it’s really hacking me off! I’m scared the police or a summons are going to knock on my door. I no longer have the iPod and the

…money has gone to bills. Am I being over dramatic?

The police won’t come, the worst thing that can happen is you will get bad feedback,
Was the Money transfered into your bank account?
I don’t believe that western union will do anything about the money, its not their problem why would they care? I’m pretty sure I have seen somewhere on ebay that if you use western union its at your own risk, I’ll try to find it and post it for you.

I picked up the $ at a Western Union place here in town. I had a PayPal account once, but someone hacked into it and spent $500 that I didn’t have out of my checking account. That’s why I used Western Union. Thanks for all your help cheebdragon. You’ve made me feel a lot better.