oddly enough, PayPal says that they will always send the email address back to Zen Cart in lower case, but ... clearly that isn't happening in your case.
Solution:
edit /includes/modules/payment/paypal/paypal_functions.php
line 60:
change from:
to:Code:if ($postArray['business'] != strtolower(MODULE_PAYMENT_PAYPAL_BUSINESS_ID)) {
Code:if (strtolower($postArray['business']) != strtolower(MODULE_PAYMENT_PAYPAL_BUSINESS_ID)) {
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