Honestly I don't think the guy is legit. Perhaps he means well in some ways and wants to do things right, but I think he is either unable or not entirely willing. His textish writing is a sign of immaturity on his part. I doubt he understands (or perhaps doesn't care) that businesses are run in a different way. Yes, I guess that Paypal is on his case. I think they probably contact people to see if they will change as it is expensive to cancel an order. The emails are really interesting, imo. He sounds like he is try to worm his way out of the situation. The whole thing of "I'll take a picture of your ready to ship item if you withdraw the hold now." Why not send you the picture *now*. He could get a box and some prototype and set the prototype in the box.
You can give them six weeks. I don't think that much longer is warranted. Yes, he could take longer, but I think he should contact you with delays.
Frankly I'd deal with someone else.
--Jay J