as an above poster has already said, morally speaking, I do not think you are obliged to pay repair costs. Just be aware that if this guy has paid through PayPal using a credit card then he may well request a "charge back" to be issued by his credit company for "damaged goods".
if i'm not mistaken, this means that PayPal *MUST* charge-back the full amount to this person's CC account, as they are the financial service behind the transaction. after this, PayPal will either sneak into YOUR PayPal account or issue a Direct Debit (depending on how you have your PP account setup) to recover the funds - WITHOUT WARNING. This has happened to a friend of mine, so beware. :angry: