Getting a refund back from a bad business? Recourse? What can I do?

As short as possible: I purchased a custom made item from a seller (early February). I paid for it using my MC but processed it through Paypal. I waited an insanely long time to receive the item and once I finally got it (mid - may) it was incorrect. The business owner told me to return it and she would fix it. I returned the item less than 3 days later and she received it back. She inspected it, ADMITTED to making the item incorrectly and then proceeded to tell me she could offer me an equal replacement. The item I ordered was supposed to be traffic cone orange and the replacement she could offer was brick red. This was not acceptable. I asked her for a complete refund of the money I paid originally as well as the return shipped. She told me she would refund me via check. I told her since I paid on a credit card, I wanted it refunded back to my credit card, but she said she could send me a check.

Twice, throughout June, she promised me a refund. In July, after her failure to produce a refund or return my calls/emails, I filed a dispute with the credit card company. Paypal cannot help me because this transaction is not covered under Buyer Protection for whatever reason.

Now, the credit card company is telling me I have insufficient information available to obtain a refund. I have dozens of emails from this woman in writing with her admission she produced an incorrect item, and she would offer a refund. According to the credit card company since the emails do not have my name and account number and a total amount of refund due by the merchant, this is not valid terms for a dispute.

So now, this seller 1200 miles away has the incorrect item AND my money and I'm being told there is absolutely nothing I can do to get my money back. The woman will not return calls or emails, all I got from Paypal the other day was something saying she "cancelled an invoice"... I don't know what that means, but I don't see any type of refund at all.

So, what can I do? I cannot get the proper information from this business woman if she fails to respond to me, and I can't get my refund through the credit card, so I'm out a ton of money and this woman gets off scott free?

There has got to be some other way I can get my due money. This is ridiculous and how can I as the consumer be completely screwed out of my money ?? How else can I get my refund?