Buyer and seller share the finalized transaction details with the escrow, how much the buyer is paying and for what exactly, etc. Buyer sends the escrow the funds to cover this purchase + the escrow fee. Escrow lets seller know that the funds have arrived and to go ahead and ship the purchase. After arrival, depending on the item and the terms of the deal, the buyer usually gets a small window (~24 hours) to ensure the item is in working order and as described by the seller. If the item fits the description, buyer notifies the escrow and escrow releases the funds to the buyer.
Edit: Yes, one of the forum escrows like OgNasty, MinerJones, etc.
Sounds good to me. Let me know how you want to proceed. PM me if needed and I can give you my personal email.