I'm sorry to say this but you were quite literally asking to get scammed. There is a prominent warning on the Currency Exchange board:
https://bitcointalk.org/index.php?topic=14632.0PayPal is extremely risky.
Having said that it is a very low amount for a scam so perhaps lolgato1 would be willing to reconsider. Let's wait and see. I would suggest to insist on BTC refund and not take PayPal if lolgato1 would offer to settle this.
Sorry for your lost, seems like a typical scammer. This is why you should never use paypal to buy or sell coins.
In addition, no matter how small it may seem, always use escrow. And never deal with PM offers, always insist on the seller/buyer posting in your thread.
I hope you can get some resolution out of this, no matter how small the probability is
EDIT: To be fair, your fee is pretty high for such a low amount + the fact that you are a newbie means very few people would deal with you (no offence). I wish you all the best in your future trades
Escrow can't help with PayPal. "never use paypal" is the only way to stay safe.