Designing Graphics help...somewhat legal matter, A client took a design without paying for it. Options

[emarielayouts]

I've been working with a client for a few years doing myspace layouts and graphics. I amused we had a good ongoing relationship. We live at different ends of the US so I've never met him in person. About a year ago, after designing some shirts for his apparel line, I lost touch with him after asking for a payment. My old email address got hacked into and I had to change it, but I did let him know that I did change it as well.

I still had no contact with him so I went ahead and sent an email stating that I'm canceling the order for the graphics and I would keep the graphics created for him. After a few months I decide to check to make sure everything is alright so I visit his myspace page and I see him advertising his clothing line with MY GRAPHICS...I went through my statements and it does say he didn't pay any of the invoices I sent him. With the amount of graphics he used, he owes me $500 and that's cheep because I gave him a flat price of $20/graphics because he was such a good client. I had always given him the benefit of the doubt and since this is a lot of money for me, I would like to collect what I'm owed.

I've contacted him through myspace, asked him to contact me through twitter and facebook as well 2 days ago. I checked his twitter page (which I had ask to follow) and noticed that he wasn't someone I was following anymore, when I went to 'follow' him again, it notified me that I was being blocked. Well, no I'm feeling avoided.

I want to handle this in a civil matter, but I'm really inexperienced in this type of thing. If it was something like $50 he stiffed me on then I wouldn't feel as bad, but this is $500 and if he makes more then that on a design I created then it's even worse!
I really don't know what to do to get my payment or to even get him to contact me. All of our correspondence has been through email. I do have a phone number from his paypal information but I'm not sure if I should use this. I don't have money to sue him either or even ask a lawyer for advice, so I'm coming to you guys, fellow designers.

Please, I know it's long and it may be tiring but I need someone's help before I lose my mind on this matter. I want to keep my relationship with my clients on good terms but it seems like it might be a lost cause at the moment.

Thank you in advance to anyone who can help.