What do i do?

Well,

I had to do a Wordpress Theme, i quote $130.
I did the XHTML/CSS and i got someone to do the Wordpress for $60.

I sent him the files,

He said it doesn't work, (He didn't install recent-posts.php plugin) i told him many times to do so. He never did. Then he says there a big red gap. (I made a gap for him, so he knows where to put the adsense). Then he says, the RSS doesn't work. I told him, i need his details/code.

So, i come back and i find that paypal have taken the $130 out, and theres a dispute. I've sent him the files and i've completed the job. He's made up a load of poo saying i was late and all this...

Do i have any chance of getting my rightful money back?

Ye u shud do, u have a copy of the email u sent the files? Or a paypal invoice w/description.

paypal does not care about digital transfers.
and they can't just take away your $130 without hearing your side of the story..

I sent the files over msn,

Buyer Dispute 6 Jun. 2008 Placed Details -$130.00 USD

You'll have an msn log then. Even though they can be easily edited.

Don't even have that Tom.

Ah kk. Tbh they'll probably just refund the mony i'd presume.

PayPal should not by any way take back the money to the person that paid you. I remember being in the other side of the story (i paid and got nothing) and paypal would not refund me the money. So, I think you should not worry about it.

Just spoke to him.
What a idiot he is.

Think i'll refund him,
Quit Freelancing and move on.

"paypal does not care about digital transfers."