I am having this problem as well. The last email notification i received from PayPal was on Sept 23rd. I have gone into my settings multiple times and re-checked the box to enable email notifications (I never disabled it myself), and each time, when i save i received a message telling me my preferences have been saved. However, when i go back into the settings, the box is un-checked. I called PayPal customer service yesterday evening (Sept 25th) and was told it was taken care of and i didn't have to worry about it any more. I'm still worrying about it! I am still not getting the email notifications which i use for filing purposes, and still cannot successfully adjust my settings.
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