Way to go Ironlady! Kick his butt!!!
I once helped my girlfriend to sue someone who owed her $50 in small claims court and we got a default judgemnt and had it garnished from his wages, which felt great. But that was in the US. If I was in your shoes, trying to win a judgement and collect it from another foreigner through legal process in TAiwan, I probably wouldn’t have even bothered trying, figuring it’s hopeless. Your are truly living up to your name. 
Good luck and keep us posted.
Thanks for the encouragement…I really do feel like I’m fighting this one all alone (as Debtor-Boy seems to have excellent, and presumably free, legal and translation services available to him, probably through the Catholic Church, I would imagine)…
Hmmmm…however, the latest document seems to be from the 1st court, NOT the 2nd court, so in effect it is unfortunately NOT the 2nd court saying we won’t hear this case, but the 1st court saying “Don’t hear this case, 2nd court, we knew what the ^&$( we were doing the first time.” Hopefully this will carry weight with Court #2. Anyway, the process is as above, in case anyone needs to go there.
The keys to successful small claims litigation here seem to be:
Keep written evidence and get copies of everything with stamps, chops, etc. from any organizations involved. You’d be amazed how long Taiwanese banks keep documents.
Keep on top of dates – like when parties are served with papers. They’re important.
Always send cunzheng xinhan (Post Office Evidentiary letters) – the court takes them very seriously as evidence that you have tried to sort the matter out on your own, i.e., you are sincere about the whole thing.
More when news comes in… 
I realize this thread isn’t of great general interest but it might be useful if somebody has to do something similar in the future, thus I keep adding to it.
Keep it up ! And keep us informed !
Ironlady:
I’m truly impressed at your energy and determination. Good for you. I’m confident that most Taiwanese would never know how to handle such a case on their own.
Actually, 99% of them shake their heads at me and tell me I’m nuts to even try. But so far I feel the system has been quite fair, and is apparently not impressed by the smoke screens DB is trying to throw up around the issue. They haven’t even complained about the bad Chinese in my evidentiary letters!
Terry, would debtor boy be a certain gentleman whose first name is begins with M and surname with T that we were talking about at the last forumosa happy hour, if so, then please take the traditional taiwan method and get the bugger kneecapped. Might as well get some satisfaction cause you sure wont see your money.