Hi Vicky - I guess I don't understand. It doesn't allow you to purchase another label until the refund is approved?
And why didn't it print in the first place, is that a printer problem? If it isn't, can you try to print the label through paypal if you tried etsy before , or vice versa?
Last resort, I'd say, is a trip to the post office. I also try to have a stash of stamps in the house just in case, and hand-write the address. In this case, of course, you have no tracking, 'no nothing', and I would definitely contact the buyer and explain the situation!