Definitely a scam. They appear all the time. The tipoff in this instance, as Bob Kazian noted, is the phrase "To active your account...." You would never find that type of error in a legitimate e-mail from eBay or any other large, reputable, and legitimate organization.
Another tipoff is "Once you have confirm your..." No way, Jose! It would, of course, be "once you have confirmed your account...." or even "once you confirm your account...." If the folks at PayPal have gotten anywhere near that sloppy with their correspondence, you'll most definitely want to avoid them like the plague (I sure do anyhow). 
