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Adobe Reader fake update emails are quite common unfortunately and they get a few unwary people. Adobe reader will update itself normally or you can manually update it via the application itself.
I always tell those who ask me about such emails to never ever click on any links provided in the email. Banks will never ask you to click on a link in an email. If you are unsure then contact the company BEFORE clicking on anything.
As with the email coming from paypal, they "spoof" the address to make it look like that it is coming from paypal but if you look at the full header information for the email then you can see that it is coming from some bogus server somewhere else.
I found one of these in my trash as well... here is the originating header line (blanked my email):
"Received: by zinc-fofi.emv4.net id hdcjb60hu6ov for <YOUR@EMAIL.ADDRESS>; Mon, 28 Feb 2011 05:28:09 +0100 (envelope-from <news@newman.cccampaigns.net>)"
I copied the "zinc-fofi.emv4.net" into google and straight away up comes some results about "zombies" (spamming bots) and "emv4.net" brings up a list about this domain spamming.
It's good to see that you (Tandum) jumped onto it straight away, it's very much to be safe than sorry when you're not sure of what's going on especially if you've already had it happen once before.
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