HERE IS THE BODY OF THE EMAIL:
Dear valued PayPal.com.au member,
It has come to our attention that your PayPal.com.au account information needs to be updated as part of our continuing commitment to protect your account and to reduce the instance of fraud on our website. If you could please take 5-10 minutes out of your online experience and update your personal records you will not run into any future problems with the online service.
However, failure to update your records will result in account suspension. Please update your records on or before January 15, 2010.
Once you have updated your account records, your PayPal session will not be interrupted and will continue as normal.
Click here to activate your account
The website is a Paypal lookalie hosted somewhere in Russia, and no doubt will happily utilise your password to transfer funds out of your account and heaven knows what else.
Be mindful of any email advising you to log into your account. It is far safer to go to a fresh browser page and key the URL into the address bar and go directly to the site. We've been spoiled with easy links to everything and are thus generally rather lazy. This benefits the scammers out there.