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Is someone trying to scam me through paypal?


I posted my Ipod for sale on craigslist and had a few people email me. One email stood out to me to be a little suspicious, but I don't see how I could be the one to be scammed. Anyways here is our emails so far:
---------
(buyer)
Hello.
Do you still want to sale this item ?
Get back to me if is still available.
Thanks
---------------------------------
(me)
Yes, I've had a couple calls and emails but at this time I still have it. Where in Houston are you located? I can usually deliver on my way to work during the week. let me know.Better to call me. Thanks!
(281)998-xxxx
----------
(buyer)
Many thanks for your mail..
But am not in the state presently....Am in Italy for conference
meeting....Am buying this item for my company agent located
oversea....I will add $100.00 USD for the shipping cost.......Making
$320.00 USD.. And i will made the payment through my PayPal account
cos is very secure and easy to receive money.....Kindly send me your
PayPal email so that i can send the payment t

This sounds incredibly fishy to me. It sounds like a stolen PayPal account perhaps. Why would someone pay over the price of what an iPod would be able to buy in a mall in Italy?

If you want to have fun, go ahead and say, okay, what's your address here in Houston and I'll swing by to verify. Or ask what's the on the corner of "1st and Broadway" because you want to "verify".

You'll never hear from him again.

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