I just got an answer to my question above... Paypal finally reached the member and the refund was processed today. I just got an email from her just now (one day AFTER the due date with Paypal) saying, "Rachel, I've been very busy lately. But wanted to let you know I responded to your dispute and your refund is processed." Now, from what Paypal's told me, she gave up the right to respond at midnight last night. Any refunds that were processed today were most likely forced by Paypal, as in Paypal probably initiated the refund and she noticed it when it pulled money out of her account. Here's the timeframe since I filed that paypal dispute. This is copied and pasted directly from my Paypal account.
Jun 17, 2010 - Seller: Refund initiated
Jun 16, 2010 - Buyer: Email sent to PayPal
Jun 8, 2010 - Buyer: Email sent to PayPal
Jun 8, 2010 - Buyer: Email sent to PayPal
Jun 6, 2010 - PayPal: Email sent to seller
Jun 6, 2010 - PayPal: Email sent to buyer
Jun 6, 2010 - Buyer: Dispute escalated to claim
Jun 6, 2010 - PayPal: Email sent to seller
Jun 5, 2010 - PayPal: Email sent to seller
Jun 4, 2010 - PayPal: Email sent to seller
Jun 6, 2010 - Buyer: Dispute filed
Jun 4, 2010 - PayPal: Email sent to seller
Jun 4, 2010 - PayPal: Email sent to buyer
Jun 4, 2010 - Buyer: Dispute filed
What a nightmare!
At least justice was served in my case... thank God!