Mark2, 2GB indeed, if you can, get some photo evidence of the chip that shows serial number and any markers on the player that indicate the size the player was sold as ie. a 4GB sticker. PayPal can be a bit pissy about 3rd party verification of the fact. If you overwhelm them with evidence in your claim they are generally pretty prompt to act.
Have a look at this post and the comment by "dkjab"
http://www.mympxplayer.org/paypal-di...ghlight=paypal