I don't know how my paypal password might have been stolen directly from me. I have not used it for over a year, and do run anti-virus checks etc.
I never open dodgy emails, or go to any dodgy sites, and I have had no indication that I might have picked up any data logging trojans, etc.

The person would need my email address, which is not one I ever use to send mail (I always send from a hotmail account), as well as the paypal password.