"You have recieved this email because someone had tried to use your
paypal account"
paypal? PayPal always use two capital P's in their service name in their official announcement letters. Just check the headers of the e-mail, and you'll discover that it was sent from someone else. Sending e-mails from any address you like is not a difficult procedure at all, making your IP / ISP look convincing in the mail headers is a whole different story.
"Stephen Wolfram is the creator of Mathematica and is widely regarded as the most important innovator in scientific and technical computing today." - Stephen Wolfram
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