After just reading a thread on a similar issue, I have a couple of PayPal questions. Thought I'd start a new thread for this.

I added a new currency (Euro) a while back in admin. I now have GBP and Euro. GBP is my default. I use PayPal IPN. Not had a Euro order yet.

I thought at the time of adding Euro currency that all my settings would be correct but I'm not so certain now.

In the admin settings for PayPal, I have..

Transaction Currency
Which currency should the order be sent to PayPal as?
NOTE: if an unsupported currency is sent to PayPal, it will be auto-converted to USD.

Only GBP
Is "Only GBP" right? Or should it be "Selected Currency"?
Also, when it says auto-converted to USD, I think this means GBP?

In my PayPal account for Payment Receivng Preferences..

Block payments sent to me in a currency I do not hold:
Yes
No, accept them and convert them to British Pounds
Ask Me
I have the middle option selected. Is that correct?