I always check these stories, virus alerts, etc at http://www.snopes.com
This story is described as a "sorry piece of codswallop" which first appeared on the internet in 2002, while an earlier version about bad smelling steamship fuel was first seen in 1999. The site gives the true origins of the word.
Still it is a funny story, and I always have a guess whether this type of story is true or not before I look it up. As I only correctly identify the urban legends about 30% of the time, I think that makes me gullible.
Jean in Poole, Dorset, UK
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