I received a damaged book, and the sender has refunded my credit but also wants to paypal me the money to return the book to them. I'll be honest... I don't really want to, it's not because I am not willing to part with the book but simply that it is just so much hassle to deal with. I have nothing I need to send out to anyone, I've done all the errands for the week that would take me to that part of town  to return it, I don;t really want to give out my email address.

I am frustrated because I make sure all my books are immaculate, and sent out some very nice things that were on a lot of wishlists. The book in question was bought used for $1.98( the label is on the book still), and all but maybe 1 book I sent cost more than that to mail. 

All this said... is it bad for me just to say, no? Should I offer to return the credit to her because I don't want to ship back? 

You do not have to return the 1st credit that she returned to you. That credit is to refund you for the credit you ordered the book with.

Sometimes, senders request that a damaged book be returned to them. If they want the book back, they either send a second credit to you, to cover the cost of postage back to them, or they can send the postage money thru paypal, or some other mutually acceptable way of getting the postage money to you.

You are not required to return the book, in any case. You can simply politely decline to return the book, you can give as your reasons the ones you have stated above, and just let that be the end. In that case, you would only need to refund her if she had already sent you a second credit for the postage, or has sent you the postage in some other way.

Make sure that all of your PMs to the sender go through the book transaction page.  Do not send a PM by checking on their name.  This will keep a record with the book tranactions.  Just in case.

I agree with Sara.  You aren't obligated to return the book.    If you are willing to do it next time you are going to the Post Office, and if she is willing to reimburse you in some way other than Paypal (a credit is the easiest) you could offer to do it that way.  But it's completely your call.

You should, however, go to your transactions archive (on your My Account menu) and submit feedback that the sender resolved the problem to your satisfaction, since she refunded your credit.  And Emily's advice is good -- you can PM her from there.