I received this email as well. This appears to be real. Here's a news story with the background:
http://home.businesswire.com/portal/site/altavista/index.jsp?ndmViewId=news_view&newsId=20040614005986&newsLang=en
I also logged in to my PayPal account and typed in the address in the email into my browser and it is legit.
Cheers,
Rawls
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