Rick,
After re-reading your auction, I think you were very clear about whether or not it came from a Sandcast. You stated that you were unsure, therefore, it is the buyer's responsibility to know what he is buying. On the pics from the 24/7 site, you can very clearly see the pimples in the lettering. He should have asked questions before bidding, or asked for a better photo before putting in his bid.
I am sure that like me, all of you are sick and tired of everybody using "Sandcast" in their Ebay ads, especially when it clearly is not a Sandcast item! But in this case, the black lettered tank badges were clearly used on the 1969-1970 Bikes.
I would remind this guy that the auction was fair, and he did not ask the right questions, hence - Caveat Emptor! (I hope the spelling is correct!). However, if he wants to be a jerk about it, give the refund AFTER you get the part back and go your separate ways. $62 bucks is pretty fair for black badges considering they are quite a bit more (check out the Yamiya site in Japan).
Anyway, looking through the parts lists at crotchrocket, here are the part numbers for the tank badges:
1969 K0 87121-300-020 replaced by 87121-300-020 which could possibly account for the pimples vs. no pimples
1970 K0 NOT A SEPARATE LISTING, so the same as the 1969 K0
1971 K1 87122-300-030
1971 K2 87122-341-000 Just for comparison....
Gersh