UPDATE:

The item was sent back to the seller and he has both the item and money now. I asked if he would give me a partial refund where he could keep $175 for the shipping and the item, and just give me back $200, and he refused. He also said he would not be re-shipping either. He said if I wanted the item I would have to pick it up from his store in Illinois and I live in Michigan.

Here is his exact email:

"I am done shipping this item. I will not extend a refund partial or full. I did my part and I am not going to waste any more money or time on this item.. If you wan the item you can pick it up at my store at 132 N 3RD ST DeKalb, IL 60115. My store hours are 12-5PM Tuesday, Thursday, Friday, and Saturday. I will be in Indianapolis guitar show this Saturday and will not be available this Saturday October 2nd."

What can I do at this point about getting my money or item back?

Am I responsible for driving/flying to Illinois to pick up my item in person? After all the problems I've had with this seller, I wouldn't even feel safe going to meet him in person. For all I know, he'll try to rob me.

Any suggestions on what I can do outside of filing a lawsuit?