Re-assert the E-Bay rules to the buyer and maybe 
even... ban the buyer from all future auctions.

That's all I can think of right now.

I can't think of much cheaper shipping price for 
international packages of that size (lowest: 
$12.50 I think) with insurance.  Let the buyer 
know that it is important for the cel to be 
trackable and insured (it's for the buyer's 
protection as well as your own).

And in the future keep my previous advice in mind 
and also only accept bids from either:

* domestic bidders, if you don't want to deal 
with foreign bidders you cannot reach easily, or

* those with overall feedback of maybe (+2) or 
higher, if this buyer is a problem bidder.