I installed Zonealarm about 2 months ago after formatting my HDD and installing Windows XP Pro.  Two things are making me suspicous.  One, the log has shown 788 prevented inbound attempts.  Second, Paypal has notified  me that someone from a foriegn IP address ( Romania, Bolivia) has tried to access my account.  Any suggestions?!?  Help

check your system for viruses here

housecall.trendmicro.com/housecall/start_corp.asp

The two are likely nothing more than coincidence. I logged something like 15,000 probe attempts in less than 10mos. Nature of the modern internet, particularly broadband / dsl portions of it.

Do a thorough fresh security check of your PC, make sure your stuff is kept up to date.
And if you haven't already - and for reasons related to Paypal alone - you should consider linking it to a low-limit charge card and NOT your bank account, and further, you shouldn't keep any funds floating in it.
PayPal was already a high priority phishing target before eBay bought them up. They are the target of continuous scams and assaults. And last I read, despite having all the trappings of legit financial institutions, they are NOT FDIC insured or regulated. User Beware.

Another thing to consider is that if you go to a site like shields up to test your firewall then it will have several hundred attempts in a very short time span pinging your computer to test the firewall and all those attempts show up on zone alarm.

Also,  I get alot of fake emails that look like they are from pay pal and there is a link they want you to click on.  But when you hold your cursor over the link you see it's not a link to paypal.com.