Ebay Trouble? Help?

[grapefruit]

I put up an item for auction on Ebay. A person outbid and won the auction. I didn't receive payment or an email for over 24 hours asking for free shipping. I told him "no" and didn't hear anything for another 24 hours. Then I get an email saying he can't pay for the item for another week or so. I emailed back saying I wanted to cancel the transaction as politely as I could and went through the steps to cancel. He denied to cancel and basically hijacked the sale until he gets paid. I tried to email him asking to cancel the sale and he got snippy. I don't know what to do. I emailed him and told him not to bother paying, he can't have the item and if he does pay I'll just send the money back. Again, he stated that I have wait until he gets payed and that my inconveniences basically don't matter. Now he's threatening to report me.

What can be done?

Do I really have to wait for him to pay me whenever he feels like it?

I don't want to sell the item anymore and told him that I wanted to keep it and he said it was his and I have to ship it when the money gets to me.

HELP!