[himar2468]

I then opened a dispute case through paypal basically saying that "the code was showing up as invalid when i tried redeeming it."

Based on the above, the following has no relevance:

This decision was made because we received shipment tracking from the merchant confirming that the merchandise was delivered."

What has a delivered Item, have to do with an Invalid code?

Im going to call paypal up today and let you know how it goes, cause im not contesting that the merchandise was delivered im contesting the fact that the merchandise was unusable.