You are unbelievable. Just pay up already. PayPal will not close the dispute; if it's closed, the buyer has no recourse for you to pay the money back. PayPal wants $163--according to you--in order to close the dispute, so just pay it. You said you don't have a problem paying it, so pay already. Stop stalling.
100% agree what lucky said. Just pay him the god dam money and move on. No one want to hear the same sh*t over and over again.