PayPal seems to have started using PostDirect for their email service. So the PayPal spoof test is breaking, rather dramatically.
It looks like this has already been taken care of at PostDirect's end. Reverse DNS for 206.165.246.85 now resolves to email-85.paypal.com.
Once the DNS change propagates, it should be fine.
-- Kelson Vibber SpeedGate Communications <www.speed.net>
