Here are my settings:

Configuration -> Attribute Settings
Downloads Controller Update Status Value = 4
Downloads Controller Order Status Value >= lower value = 4
Downloads Controller Order Status Value <= upper value = 6


Modules -> Payment
Credit Card = 2 (processing)
Cheque/Money Order = 1 (pending)
Free Charger = 4 (order updated)
PayPal IPN = 4 (order updated)

Localization -> Order Status
Pending (default) =1
Processing = 2
Prepared for Shipping = 3
Order Updated = 4
Being Delivered = 5
Completed = 6
Order Cancelled = 7

Version of Zen Cart is 1.3.6
upgrading to new version at this point is not possible at this time, but still shouldn't be required since it's a problem with a basic module and/or setting.

When someone purchases a design that has a PDF as an attribute, if they pay by pal pal, they are able to download it immediately as soon as the transaction is complete.

When someone orders a design that is set to 0.00 (item is free), I have to manually update the order status to 4 (order updated). It doesn't do it automatically - wish it did.

Gisele