Noticed Fee Amount was incorrect.

This was while viewing the order area in the Admin side.

There was a partial refund submitted through PayPal.

PayPal status: Reversed @ 08:12:41 Jan 20, 2008 PST
Parent Trans ID:2G454981548855d
Trans ID:4WN78981516789413
Amount: -65.03 EUR

Original payment was for 120 EUR so the fee was 5.03 EUR, but if you'll notice (a 60.00 Refund was issued) the full fee was applied to the refund.

This didn't affect PayPal's end any, just ZC's. Perhaps just a simple calculation mishap...

That information will be what PayPal supplied via their IPN which told your store about the change.
Zen Cart doesn't calculate anything with respect to PayPal fees.

DrByte:

That information will be what PayPal supplied via their IPN which told your store about the change.
Zen Cart doesn't calculate anything with respect to PayPal fees.

The fee was around 2 euros, not 5?