I usually never step in on this kind of stuff but I dont think this is the right thing to do to someone. Let me get this strait.
You sent MO
Tbilly Tried to cash it and was hit with a large charge to do it.
Tbilly returned the MO to you.
Your are only out the cost of two Mo's and he is out the shipping of the Mo back to you. Move on.

I would have done the same. It turned out to be a nightmare deal. I hadsimilar issues with both a MO from Alberta and one from Ontario. Both went south real fast. Lesson learned.

I have dealt with Thrillbilly on 3 differant occasions for a few high dollar items in the past and never had an issue at all. He even sent one to me recently before he recieved payment.

Thanks,
Mike