Zen Cart has already been tested with the PayPal sandbox. You do NOT need to do sandbox/developer testing before using PayPal on your Zen Cart store.
But, since you seem to be determined to use the sandbox regardless, here's how:
In your Payments Standard module settings in Zen Cart, set the URL to www.sandbox.paypal.com/cgi-bin/webscr
It will NOT work with a "localhost" server. Your server must be on a live webserver with a real domain name, else the IPN sandbox will not work because it won't be able to reach your Zen Cart store on localhost.
For ALL help using the sandbox, talk to PayPal support. They have all the documentation and support you need.
WE STRONGLY RECOMMEND THAT YOU USE EXPRESS CHECKOUT INSTEAD OF PAYMENTS STANDARD. I repeat: You should really use Express Checkout instead. Again I repeat: You should be using Express Checkout instead.
In case I forgot to mention, you should be using Express Checkout instead of Payments Standard.


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