I would say you both need to call PayPal and explain the situation. Perhaps they will help you get reimbursed. Don't file item not as described, they'll just have you ship it back at your expense before refunding you, so you would've out the same amount anyways.
Too funny that you found each other! At least this way you know you will get your correct machine, even if you have to pay the shipping. I would be afraid of paying shipping to move it to the right person and then not getting my machine.