I suspect the items I won from Ebay are linked to credit card fraud

I purchased two items from the same seller and paid through Paypal. Both items arrived yesterday and one item came from WalMart.com and the other one from Babies R Us. Both boxes included invoices with different buyers name and address. This lead me to think the seller stole other people's credit card and ordered the items. I contacted eBay last night to let them know what I had suspected. They said they will open an investigation. I asked what do I do with the items, the representative indicated that I can use the items since I paid through Paypal and it was covered under Buyer's protection. My issue is, I do not want to use the items if it was purchased from someone's stolen credit card but I don't want to lose out on my money as well. What other course of action should I take to protect myself?

You don't know they were purchased through fraud. In any case, you should look at them as more like a gift from Paypal. They will deal/or not deal with any fraud that occurred.

What kind of feedback did the seller have? Tons of good? Very few?

This is nothing new, same thing happened to me 2 years ago, I even posted about it at CAG linky

It was from WalMart.com as well