So, I just got home, logged in to my email account and found to emails with regards to the item. One from ebay stating that I won the auction and the 2nd being the invoice from the seller.
The invoice that the seller sent has a higher total, then the actual ending auction total. He has added to the shipping and handling total part of the invoice. I've gone back and thoroughly read thru the entire listing and there is no wording of any kind stating additional fees.
I'm figuring, they either didn't get what they thought the final bid was going to be or they didn't get an accurate total of what it was going to cost to ship the items.
I've already sent them an email asking as to why the totals are different and am waiting for a response.

So, I guess what I'm wanting to know is if anyone else has had any similar experence and what you did or what ebay will do about it.

Just pay through the auction. He might have a lot of auctions and be forgetful or any number of things (is your paypal address in HI or AK?).

I have been noticing sellers "requiring" insurance on media items. I've seen sellers try to require $4.00 insurance on a $5.00 dvd plus the shipping in handling. It is there way to get around the $3.00 max for regular shipping.

This happened to me once and I had to eventually go to Ebay to get it resolved. They had a term for it, adding extra cost after the auction ends that is not stated in the auction, but basically told the guy I wasn't going to pay the extra for "box, tape, etc" as he explained it. Not sure how it turned out after I reported him to Ebay but I ended up not paying for the auction. Small item by the way.

To get around the $3.00 max, I had an auction for a bunch of CDs and simply stated in big, bold red letters that I would add a specified amount ($6.99 since I was sending in a flat rate priority box for $9.99) and made sure this was stated again when I sent the invoice. I added the extra money in the +/- box and didn't have any problem.

FYI, you can probably just adjust the total yourself. If the seller is using one of the third-party checkout services, it might be a pain. Otherwise, you can just use the "discounts and additions" field on the first checkout screen. Just adjust your price, pay and wait a few days to see if your order ships.

I wouldn't pay any above what was listed in the auction. If S/H was already covered there, that's what you should pay (unless it's extremely negligible and not worth the hassle, like under a buck). What's the seller's feedback like? Anyone else had a similar problem?

I just want to make sure you aren't thinking that the auction ending price INCLUDED shipping and handling. Your OP is very awkwardly worded in that manner

Thanks everyone for the input.

I finally heard back from the seller today. He stated that he thought that the ebay shipping calculator would have added the additional cost for his shipping supplies. Luckily he admitted it was his mistake and sent me another invoice for just the actual ending bid amount and shipping charges listed in the auction.

He has only a 25+ rating and obviously hasn't used the shipping calculator before.
I've used the calculator many times myself and you add any extra handling charges in the calculator yourself when listing.

Translation: "You caught me."

^ aka meh, i had to try!