I just wanted to give you all an update.

This experience was quite the roller coaster of emotions for me! I came very close to just keeping them and setting them into little bezel earrings and selling them. My littlest loved them and when I offered to make earrings for her she got all giddy. But, she deserves flawless diamonds so ;P ...
with some unpleasant going back and forth where I was called a liar, accused of switching them (like someone else said, how many people have 6 diamonds - with the exact same measurements as these - to even be able to do a switcheroo??) they offered to refund me. However, since they already said these were not theirs I was hesitant to send them back because A. I had already filed with paypal, (but they refused to communicate thru papal, only thru email which was suspicious to me), B. They said that if they felt like they were not the same ones they shipped to me they would refuse the refund and send them back to me. I would lose out on even more funds due to the extra shipping cost - which is $36 Fedex to overseas. C. They already accused me of switching them and denying these are theirs, so I felt like that is what they were going to do - refuse them. Also, they said I had 24 hrs to agree to their long list of terms or they would refuse the refund. All the while they were ignoring the Paypal means of communicating trying to get me to do so w/out going thru Paypal. SO, I escalated it to a claim thru Paypal, and held on to the diamonds - risking that I would not win the case. If that happened then I would continue with the plan to set them and sell them.
One of you told me to call Paypal and not just email. THANK YOU SO FREAKING MUCH FOR TELLING ME THIS!!!!
Well, as it turns out, I told Paypal they were communicating with me via etsy, and I didn't know what to do. They said if I went ahead and returned them w/o going thru Paypal and they refused the return I could still escalate to a claim on Paypal because they would have the tracking info from fedex proving they refused them. BUT (BIG BUT) if the address that I originally returned them to (overseas) didn't match the address given on Paypal, and thus the address used to settle the return and refund thru pay pal's claim should I win the claim, did not match up - or is in the states - it would be hard to prove or settle. THAT right there was enough information for me to realize that this may have been the seller's plan as they are located in NY AND overseas. They have 2 addresses. The wonderful paypal gal told me that a lot of times sellers dropship merchandise. Another big hint for me. I truly believe this is what they do - and they were probably even told they were VS quality from their supplier, and never even saw them firsthand! Who knows.
Also, I was concerned about another thing. In addition to losing the cost of shipping for having to ship it back overseas I was also most likely going to lose the $50 deposit I OFFERED to the seller since they agreed to hold them for me for 2 weeks. I'm too nice sometimes, dangit! Take note, it is hard for paypal to refund "deposits". Huge lesson, so please learn from this. I basically GAVE them 50 bucks. *sigh*. So that is 86 bucks lost if I were to return them. 6 of them were 438, and 2 were 120, so I thought I could just return the six in the first order and keep the 2 in the 2nd order so I would have at least SOMETHING for the money lost. But, paypal told me that if I was awarded the refund thru them, and the seller address is different from the address the item came from, and in the states, I would be refunded the cost of shipping as well.
I won the claim, and have to return them asap - to a US address, no less. My loss? $50, and a lot of grief. I'll take it.
yay, me. If you are honest, it almost alway works out in the end, right?
And to end this saga on an even happier note...
(I'll post about it in another tread!)

P.S. The seller threatened to sue me if I gave any negative reviews about their company anywhere. But, little do they know, I KNOW you can't sue the truth! Etsy suggested that I DO leave feedback for them, and I will.