Well, I just installed
http://www.iconix.com/ which is a free download and recommended by Paypal and many other legit vendors. This way you know if that Paypal, Ebay, and 1500 other vendors is legit and not SPAM or a SCAM.
I did get an email from "sendmail@paypal.com on behalf of xxxx" which at first had me guessing if it was real or not... After downloading this tool, it validates that the email did come from Paypal, and I have a transaction that is still in the "uncleared" state. The buyer's address is not registered, but that is not always bad, some people may have a different billing and shipping address.
Anyway, I'll keep you posted over the next 4-5 days...
