If it truly was paid in full, then unfortunately you don't have a lot of leverage. The best thing I can suggest is goodwilling the original creditor. Odds aren't good, but it will only cost you 39 cents to try.
If the account was settled for less than the full amount, then you have a bit of leverage you can exert. Say for example the debt was for $1,300 and they settled it for $850. You write 'em a letter offering to pay the difference, their written off loss of $450. In exchange they agree to delete all reporting to all credit bureaus on this account. Do it in writing, don't open your checkbook or send one penny until you have something in writing--you agreeing to send payment within 15 days of receiving the signed agreement from them, them agreeing to delete from all bureaus on this account within 15 days of receiving payment.
All depends upon the creditor. Some will. Some won't.
If it's AMEX, they are incredible tough. Unless you still owe them money, they likely will not budge at all on the deletion of reporting--whether you owe them money or not. I have a paid collection with them, PIF, and it's scheduled to drop off my reports in February 2008. Goodwilled 'em twice. Got a response both times. No. Tradeline stays for as long as the law permits.
Also AMEX blacklists anyone who owes them money. You won't EVER get another card with AMEX if you owe them money. Even if the debt is beyond SOL for suing, and beyond being reportable on a credit report, you have to pay up in order to get a card with them again. Didn't used to be, but that's been their policy and behavior in recent years. These days they are the elephant that NEVER forgets.
FICO doesn't say so, at least not that I've found, but an AMEX account in good standing seems to punch well above it's weight when compared to a VISA or MC. It seems to be worth it, from a credit score perspective, if you settle up with them.
AMEX does have a program, or they used to, call Oasis. My understanding of it, if you owe them money, they give you an Optima Card (credit card, not a charge card like Green, Gold and Platinum cards) with that debt on it. You can PIF at once, or over time with interest. It's a new tradeline with AMEX, and if you keep it current, you will be considered for credit increases and card upgrades. Several folks on creditinfocenter have paid up with AMEX and gotten back in their good graces.