Doug,
There are several Paypal scams--looks like there are a few good examples on this board. You will probably see 20 different ones like the example you showed.
On a different note, I read about a guy in (I think)Australia that was scammed and he gets the idiot award. The scammers came to him with some maps and official looking documents and told him that he had buried treasure on his land. They then told him to put some money in a bag and leave it on his property to "bless" the find. Of course, they took it and dissapeared. I think he lost like 17,000 bucks.