Jim- sorry to hear about the bummer story. Definately contact the seller and see if they will rectify the two problems- they should. Hopefully you got the camera for a good enough deal as is.
Why do people persist in buying from ebay? Well, everything is there these days- 90% of people selling stuff sell it on ebay. (How many good swap meets and flea markets are left in your area?) Annyway, I've been pretty lucky with ebay, and have found a few nice things there. I think if you treat people online as you would in person, and use as much care as you would when dealing with a stranger face to face, you can do well there. Of course I have heard the horror stories, and I know they happen; but being careful and fair (and lucky), the worst that's ever happened to me is this: I won an auction for a Nikon FM2 from a big-name regular seller with pretty good feedback. It was a good price; I sent a money order. The camera arrived a few weeks late, in a shoe box, with no body cap- or packing materials. (!?!?) The mirror was smashed, among other problems. I just sent it back, with a note. I've not done business with the seller since.
However, they refunded my shipping- even before the package arrived- and once it finally did come, they quickly gave me a refund of the whole amount. (I sent an email alerting them to the imminent arrival of the package headed back to them.) Their feedback has since improved, so maybe they were going through some iGrowing Pains, and occasionally I consider trying them again.
I still use ebay from time to time. Let the user Beware.