Bruce, I agree with both Druxy and Jose: don't waste your energy. I know how infuriating it is, but both WalMart and the police have bigger fish to fry. Stay on top of the PayPal part of it, as I know you will, provide the details to WalMart and the police, then walk away.
I cannot speak for the Colorado WalMart, but the one where I shopped in Florida was staffed with seniors, who were on their feet all day (murder!), and many of whom seemed to have had a limited education. Nice people, trying their best, but with limited resources.