Yes, it's a tricky one but IMO the seller was acting dishonestly by not disclosing all the info in his sale - despite him knowing the full truth - and he's certainly not acted in the spirit of things. I reckon you'd have an excellent chance of a Paypal refund if you did go down that route. Hats off and all kudos to you though for being honest and not doing what he did by passing it on to an unsuspecting buyer. I'm with you - absolutely hate dishonesty.

Japan's definitely your best bet if you're selling it on - who knows, you may even make a profit. You can sell to Japan on ebay by using the selling options to make your item available to buyers worldwide or just in certain countries (inc Japan). The only problem is that lots of Japanese people don't speak or read English, which limits the market somewhat - they won't pick up on the listing at all. Written Japanese is in Kanji - Japanese script - and the Japanese Kanji version of ebay is at eBay Japan Export Center but you'll need to find someone who can read and write Kanji to be able to list there and make use of it...