You're welcome - sorry about the bad experience!
Unfortunately, with that type of scam, I doubt very much you'll get a complimentary copy of Windows from MS - and paypal are known for not being forward on refunds
I would suspect that the seller will attempt to fob you off with another Key - do NOT accept it, as it will go the same way as the first.
Press your case with both them and paypal - and notify law enforcement as well.
For what it's worth - the first warning flag on that site is the total lack of any physical means of contact - no snail-mail address, no telephone number, and no email address.
Second clue is that the place normally occupied by the webmaster's link only contains an icon - which leads to http://www.51.la/
If you do a whois on those two domains....
Code:
Domain Name ..................... nowin8.com
Name Server ..................... f1g1ns1.dnspod.net
f1g1ns2.dnspod.net
Registrant ID ................... whois-protect
Registrant Name ................. WHOIS AGENT
Registrant Organization ......... DOMAIN WHOIS PROTECTION SERVICE
Registrant Address .............. 3/F.,HiChina Mansion,No.27 Gulouwai Avenue
Dongcheng District,Beijing 100120,China
Registrant City ................. Beijing
Registrant Province/State ....... Beijing
Registrant Postal Code .......... 100120
Registrant Country Code ......... CN
Registrant Email ................ @whoisprivacyprotectionservices.com
Administrative ID ............... whois-protect
Administrative Name ............. WHOIS AGENT
Administrative Organization ..... DOMAIN WHOIS PROTECTION SERVICE
Administrative Address .......... 3/F.,HiChina Mansion,No.27 Gulouwai Avenue
Dongcheng District,Beijing 100120,China
Administrative City ............. Beijing
Administrative Province/State ... Beijing
Administrative Postal Code ...... 100120
Administrative Country Code ..... CN
Administrative Email ............ @whoisprivacyprotectionservices.com
Billing ID ...................... whois-protect
Billing Name .................... WHOIS AGENT
Billing Organization ............ DOMAIN WHOIS PROTECTION SERVICE
Billing Address ................. 3/F.,HiChina Mansion,No.27 Gulouwai Avenue
Dongcheng District,Beijing 100120,China
Billing City .................... Beijing
Billing Province/State .......... Beijing
Billing Postal Code ............. 100120
Billing Country Code ............ CN
Billing Email ................... @whoisprivacyprotectionservices.com
Technical ID .................... whois-protect
Technical Name .................. WHOIS AGENT
Technical Organization .......... DOMAIN WHOIS PROTECTION SERVICE
Technical Address ............... 3/F.,HiChina Mansion,No.27 Gulouwai Avenue
Dongcheng District,Beijing 100120,China
Technical City .................. Beijing
Technical Province/State ........ Beijing
Technical Postal Code ........... 100120
Technical Country Code .......... CN
Technical Email ................. @whoisprivacyprotectionservices.com
Expiration Date ................. 2013-11-21 05:39:04
...so it looks like you've been scammed by the Chinese.