Help? Checkout Halts @ Payment Methods

[iLoveDirect]

Server OS: Linux 2.6.23.14
Server Up Time:
PHP Version: 4.4.7 (Zend: 1.3.0)
HTTP Server: Apache
Zen Cart 1.3.0.2
Database Patch Level: 1.3.0.2
v1.3.0.2 [2009-02-14 23:45:35] (Fresh Installation)
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I'm having a bit of trouble with Zen Cart. I added one test product to my site at the value of $1, and tried to check-out. I get through the shipping information, but nothing appears when it gets to step #2. The application doesn't show any payment methods... it just stops. No errors.

The only payment method I have is "Paypal IPN" which I set up today. I have not "verified" my Paypal account, so could this be the cause? I have no tax or shipping selections in paypal. I have no tax classes, zones, or rates.

[Kim]

The most recent version is 1.3.8 - Why are you using 1.3.02?

[iLoveDirect]

This is the version provided through the installcentral tool through my host. There's no upgrade option at this point.