lsinger70,
Thank you for your post. Upon reading it, I immediately checked my email as I too placed an order this morning using Paypal. Low and behold, my order had been cancelled as well. I then called Toys R Us Customer Support (just as I had to do when I initially placed the order in order to get the discount code to be accepted). Contrary to the email, they stated that my order would not be cancelled and that they were currently working with Paypal to "push" all of the failed orders through manually. They also said that I would receive an email on Monday morning stating the same. So, in essence, don't fret, your order should go through too
.