Does this pyramid scheme work?

Why do people still ask if pyramid schemes work, or even worse, fall for them? (Edit 7/30: That discussion thread was removed, so the link will not work.)

As Seen On OPRAH & 20/20 - TURN $6 into $24600
Earn money using PAYPAL as seen on Oprah & 20/20
Here is how it works. There is a list of 6 email addresses (you’ll see it as you read further). Each of these people has already taken part in this system. When someone new comes along (such as yourself) he/she removes #1 off of the list, moves the other five email addresses up one position (i.e. #6 goes to #5, #5 to #4, etc.), and places their Papal email address in the #6 position. This process is what develops the power of compounding. The bottom line is this. Honesty and Integrity creates Profitability. Following this EXACT process is what creates the money. Altering the system creates weak results. The legality of this system comes from the idea that you are of course creating a mailing list, and a service is being provided.
INSTRUCTIONS: STEP 1: The first thing to do is highlight and SAVE this entire post in word or notepad on your computer so you can come back to it later. After that, if you are not already a Papal user you need to go to the Papal website at www.paypal.com And SIGN UP. If you want to be able to receive credit card payments from other people then you will need to sign up for a PREMIER or BUSINESS account (not just a PERSONAL account). This is highly recommended to allow others easy payment options. In order to place the initial $6 into your account, you will have to verify your bank account with PAYPAL (which may take a few days). PAYPAL is 100% secure and is used by millions of people worldwide.
STEP 2: The first thing to do is to send a $1.00 payment to each of the 6 email addresses on the current list from your Papal account. To do this quickly and successfully, follow these simple steps:
1. Login to Papal and click on the Send Money. Tab near the top of the screen.
2. In the Recipient’s Email field enter the email address
3. In the Amount field enter 1. (This is your $1.00 payment)
4. In the Category field select Service. (Keeping it legal)
5. In the Subject field type EMAIL LIST. And in the NOTE field enter PLEASE PUT ME ON YOUR EMAIL LIST. By doing this, you are creating a service and maintaining the legality of the system by paying for the service. 6. Finally, click on the Continue button to complete the payment. Repeat these steps for each of the
6 email addresses. That’s it! By sending the $1.00 payment to each address, you are implementing the compounding OWER of the system. You will reap what you sow!
Here is the current e-mail list:
*************************************************
#1) email address deleted
#2) email address deleted
#3) email address deleted
#4)email address deleted
#5)email address deleted
#6) email address deleted
************************************************
STEP 3: Now take the #1 email off of the list that you see above (from your saved file), move the other addresses up (6 becomes 5, 5 becomes 4, etc.) and add YOUR email address (the one used for your Papal account) as number 6 on the list. This is the only part of the document that should be changed. ** Make sure your email address is the one you have registered with Paypal **
STEP 4: Post your amended article to at least 200 newsgroups or message boards. Keep in mind that there are tens of thousands of groups online! All you need is 200, but remember the more you post the more money you make - as well as everyone else on the list! Use Netscape, Internet Explorer, Firefox, Safari, or whatever your internet browser is to search for various news groups, on-line forums, message boards, bulletin boards, chat sites, discussions, discussion groups, on-line communities, etc. For example, log on to any search engine like yahoo.com or google.com and type in a subject like “MILLIONAIRE MESSAGE BOARD”, “MONEY MAKING DISCUSSIONS”, “MONEY MAKING FORUMS”, or “BUSINESS MESSAGE BOARD”, etc. You will find thousands and thousands of message boards.