Based on the information you provided me, I realized that my "tpl_login_default.php" does not need to be changed to include the express checkout but the "tpl_shopping_cart_default.php" does. The reason is because the first screen you will see when you hit "checkout" is the shopping cart page and there you will see the express checkout button. Or am I missing something?

Ok, back to the issue at hand. I realized that the templates were old as you said. So I simply copy the paypal express checkout button code to my template and it seems to be ok but I will test that later.

Any thoughts on doing it this way?