Hello 'fairlylight...',
<<...paid for a item & it says shipped the seller changes shipping options "no longer ships to Canada">>
This could mean any number of things but the first that comes to my mind is that the seller is
relatively new and did not set the listings up very well. He may have indeed shipped your item
and once he saw what it costs he made the change. For new sellers, getting that whole shipping
thing sorted out seems to be the biggest challenge.
So no need to panic yet. It would appear that you, too, are new so you will need to know what
to do if you get an item which does not match the description or worse, - does not show up at all.
You have 45 days (just over 6 weeks) to start a claim, and once started, a further 20 days to
escalate it. If you actually want your items, it makes sense to wait for them to arrive.
If, however, you do not receive an international item by day 40, contact the seller. If by day 43
you have no refund and no item, open your claim and do not close it until you have one or the
other.
And never accept a promised 'replacement' item. That is just a delaying tactic to push you past
the deadline.
Have a look at the following link about ebay's buyer protection policy:
http://pages.ebay.ca/help/buy/item-not-received.html
<<does this mean the item is refunded ? or is it still being sent ?>>
Any time you get a refund you will get a paypal notice in your regular email announcing
that your payment has been refunded. This shows up the instant the seller uses the Refund
link in his paypal account. If you have a paypal account you can check to see if the refund is
there, or if you use a credit card you can call the 1-800 number and hear recent transactions.
It can take anywhere from 2 days to 2 weeks to get back on your card.
So my guess is that the item has been sent. But just to make sure no one takes advantage
of you, get to know the Timelines section in the above link.
Enjoy your new item. 
