Yeah,
this happens alot, a friend of mine got the same kind of email to an auction, the silly thing is that he was the seller of the item not a bidder, was kind of amusing.
It seems to me that they just look at the auctions that have alot of bidders on it, silly thing is, "they" say that the high bidder like didn't pay or stuff like that, normally the email turns up like 5mins to and hour after the auction finishes... o_O?
You also normally have more luck getting your credit card company or bank to get you the money back since, unlike paypal they actually care, and have a bit more weight behind them.