That is weird.. How many times have you clicked the resend button? Try it again, maybe paypal was having problems when you did it. If it still doesn't work, then yeah you should try a new email address.
Yep that did it.
Its very odd that it happened though. For some reason it never sent the confirm account email. I emailed paypal and got a response from them but like I said never got the first email they send when you first set up the account.
I added another email and confirmed that way.
I hope I wont raise any flags by doing that.