Here is the text of said email, so maybe you ebay/Paypal savvy folk can tell me what to think:
"As part of our security measures, we regularly screen activity in the
PayPal system. We recently noticed the following issue on your account:
Recent account activity has made it necessary for us to collect
additional verification information.
For your protection, we have limited access to your account until
additional security measures can be completed. We apologize for any
inconvenience this may cause.
From 1st March 2005 PayPal requires your Personal Identification Number. This is the latest security measure against: identity theft , credit card fraud and unauthorized account access.
PayPal will verify it with your bank records for your own protection.
If you provide a wrong PIN your account will be suspended for unauthorized account access. Due our latest security improvements PayPal became a global leader in online payments.
To review your account and some or all of the information that PayPal
used to make its decision to limit your account access, please visit
the Resolution Center. If, after reviewing your account information,
you seek further clarification regarding your account access, please
contact PayPal by visiting the Help Center and clicking "Contact Us".
We thank you for your prompt attention to this matter.
Please understand that this is a security measure intended to help
protect you and your account. We apologize for any inconvenience.
If you are the rightful holder of the account you must click the link below and then complete all steps from the following page as we try to verify your identity."