Where EXACTLY did you find that message?
It doesn't look like a PayPal message at all (those are almost always 5-digit numbers, not 2-digit numbers).
Ya, well, that's unrelated. The only reason your site wouldn't make that DoExpressCheckoutPayment call is if your customer is abandoning the sale. It would not have anything to do with a message saying your merchant account is inactive ... because if your merchant account at Paypal were inactive then you wouldn't even get the first SetExpressCheckout call to pass, let alone the 2nd or 3rd calls which you're talking about.
Sounds more like this is your old Authnet payment module still being active on your site but connected to a merchant account that you've cancelled. If you're gonna cancel a merchant account, you need to also remove the payment module that's offering that service.
Actually, I decided to use google to look up the error message you quoted, and the very first result I got confirms that it's your old authnet module throwing that error. See: http://support.authorize.net/authkb/...ontent&id=A415



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