Got this reply from the real PayPal today after forwarding my e-mail to their security dept.
<BLOCKQUOTE class="ip-ubbcode-quote"><div class="ip-ubbcode-quote-title">quote:</div><div class="ip-ubbcode-quote-content"> PayPal and its representatives will NEVER ask you to reveal your
password. There are NO EXCEPTIONS to this policy. If anyone claiming to
work for PayPal asks for your password under any circumstances, by email
or by phone, please refuse and immediately contact us via webform at
https://www.paypal.com/wf/f=sa_pass.
</div></BLOCKQUOTE>
Jim