I think you should have made it clear about the shipping & handling fees before the auction against this kind of trouble (I didn't check your auction, so I don't know if you already did.). I usually tolerate 'handling' fees upto 10$, but some sellers just abuse it and it just ticks me off. especially if the item is not well packed. It also depends on the stuff you send. Some bigger stuff would need higher amounts of handling fees (I had whole A3000's shipped to japan a couple of times.). while smaller items like rom chips shouldn't have high handling prices. the definition of 'high' is the problem here, and should be made clear.
Of course buzzing for one buck is just nonsense. I bought roms from you and your charges were quite reasonable (in my terms), and the items well packed. Usually I don't leave feedback if I'm not happy with the shipping prices/attitude if the item is working. Now ebay has detailed seller rating, which lets the buyer to rate sellers shipping prices. If the item is working, it's possible to leave a positive but give a rating of very unreasonable shipping price if you're not happy. So the neg was completely unnecessary and hastily, especially since you've offered a refund anyway.