Per Craigslist:
Deal locally, face-to-face —follow this one rule and avoid 99% of scam attempts.
Do not extend payment to anyone you have not met in person.
Beware offers involving shipping - deal with locals you can meet in person.
Never wire funds (e.g. Western Union) - anyone who asks you to is a scammer.
Don't accept cashier/certified checks or money orders - banks cash fakes, then hold you responsible.
Transactions are between users only, no third party provides a "guarantee".
Never give out financial info (bank account, social security, paypal account, etc).
Do not rent or purchase sight-unseen—that amazing "deal" may not exist.
Refuse background/credit checks until you have met landlord/employer in person.
This one goes against most of the rules. I'd flag it as a scam and move on.
At minimum, the emails from the EBay "escrow" would be fake. You'll pay him money from your PayPal and never see it again. Worse, as described above, is they steal your EBay and PP credentials.
Might use a junk account and fuck with him. Let him steal that fake PP account with $1 in it.
Edit: added color for emphasis