This is the first scam/phish topic that I've posted -- I normally wouldn't post something like this because they often suck. But this one is different, it's pretty slick. Following is a description and some screen shots.
As the norm, I get an email telling me I needed to update my PayPal account, well I don't have an account -- that tipped me off right there, but I decided to follow the link anyway.
Here's a screenshot showing the fake website:
Here's a screenshot of the real website for comparison:
Note the strange URL on the fake website.
I didn't link the page because I don't know if the site contains spyware/viruses.. be careful if you decide to look at it for yourself. All the links on the fake page redirect to the official Paypal pages except the "Log In" button. The "Log In" takes you to a page asking you to fill out some information (credit cards, etc..) no matter what is typed in the email/password fields.