Hey, I think the PPL question would be like in the Editorial a couple weeks ago:
http://www.neopets.com/ntimes/index.phtml?section=editorial&issue=253

(just scroll down to the Baby Vampire to read it verbatim)
It basically explains that if the actual item number of a petpet hasn't changed (as in the Baby Vampire/Snorklin), the petpet IS eligible for PPL. If a petpet changed into food/other items (and I don't remember anything about THAT happening), then no PPL.

(A MORPHED petpet--morphed by a potion--would not be eligible, I believe, though I don't remember where I heard that. I just know it wouldn't be fair to other players.)