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Also, maybe it had to do with personalized search. Did you and your client remember to log out of any Google accounts before searching the keyword?
http://www.seobook.com/archives/001939.shtml
In commercial areas the ability to attain a good CTR and maintain PPC expenditure is often an indicator that the web site / company has a compelling offering. As a result I think it makes perfect sense for Google to factor this in to the organic algo to some degree.
Interested in this post and Vinnys findings. We have experimented with htis over a number of years and have not found paid search spend influencing organic rankings.
I'd be interested to know what sort of spend was placed on promoting this page as well as the competativeness of the phrase (maybe too much to ask ;)).
It would be great to have more examples. If it is true (which the Incubeta guys) believe, it has major consequences.