Originally Posted by Webmaster Advertising

You paid via Paypal, you wont get your funds back, they DO NOT protect buyers of services, only physical product.

We've had this issue several times in the past with clients trying to scam us out of payment, a simple call to Paypal and that dispute goes away and the buyers funds are back in our account.

The ONLY way you can get your funds back via Paypal is if you paid using a credit card to fund your Paypal transaction, if you didn't, sorry to say it you may as well kiss your deposit goodbye unless you can work something out with the designer.