Basically, this is what I think happened...
All of us who payed with Paypal DID have an ilok code ready for us. The original Insane Deals (or whatever) email did not show the passcode (to sign in get to the download links & simultaneously get an ilok redeem code emailed to us) in the email itself, but if you clicked the View Online link at the top, it took you to a copy of your invoice on a web page. That invoice DID show a passcode, and if you sign in at the link with that passcode, you get an automatic email with an ilok code. I think all of us just overlooked this before because we didn't see it in the email and didn't know where to look.
The new email they sent today has a different passcode, and you guessed it... a different ilok redeem code along with it. SO, I think they voided the original iLok codes to keep people from having an extra code (which could be sold). This also means that anyone who noticed this earlier and redeemed that original code before it was voided could possibly have two working iLok redeem codes right now.
not for me. i bought it today with credit card got the code almost immediately and still got the error.