Hmm I don't think it's a scam because if it really is then I don't see why the scammer even bothered emailing him back to tell him that the contest is only open to US and Canada residents...
Unless this is a scam to get him to create a vPost account??
I don't subscribe to Reader's Digest but I still get those sweepstakes packages with my name printed onto a 'potential winner's ticket', etc. Good thing they're going bust!