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Luckily I already had my Touch and didn't need to order from this guy but I have a friend who did. I would recommend at least calling your credit card company and/or PayPal to alert them to the fact that you may have been the victim of fraud. You don't necessarily have to dispute the charge right away but call them up and see what your options are. If PayPal has recently received a lot of complaints about this ebay seller, that ought to tell you that he's trying to pull a scam. Also, I would be pretty disturbed if I bought from him and then saw that MySpace page - not very confidence-inspiring.
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