When you say that the CC has a "hold" on the funds, does that mean the seller can't see him in his PayPal account yet? If that's the case then he would be a fool to ship.
Also unfortunately CC-backed PayPal purchases are quickly becoming a favorite method that scammers use to rip sellers off by getting their money back and absconding with the merchandise, especially now that merchant processors and vendors who take straight credit cards for online transactions are putting in tighter controls to help fight fraud.