Thanks all for the replies. I live in Colorado which takes a nice chunk out of my paycheck. I don't feel like donating more of my decreasing paycheck to California.
I'll call the "Call us anytime" number they provided on the tax form (which is only available during normal business hours M-F) and try to nip it in the bud there. Bottomline...doesn't look like I'm obligated to pay so I won't. The only question is how long it will take before they get tired of asking. Guess I'll have to take good notes because it sounds like this might be an annual event. Since they've only contacted me now about 2007, I can see this taking a while. With amazing efficiency like that, I just can't figure out how the state can be teetering on bankruptcy. </sarcasm off>