Fake. I got one about a week ago saying saying "Dear PayPal User"...that right there is a sure sign it's fake. PayPal communications addres you by your email address, to show authenticity...something a hacker or phisher wouldn't know.
The email I got said I had paid some iPod store $200-some dollars for an iPod, (which I did NOT do) and if it was a mistake, to log in and notify them.. Log in....then when you do, they have your log in info and access to any bank accounts within..