This is a result of several possible situations:
1. You have entered API credentials for a sandbox account but have set it to "live" mode.
2. or vice-versa
3. A typo in what you entered (but you said you're sure there's not)
4. Something wrong with your PayPal account
Also, it seems you're not using Zen Cart v1.3.8 (based on the wording of the message). Which version are you actually using? v1.3.7 has some bugs that were fixed in 1.3.7.1. Additional fixes and improvements were made in 1.3.8.
Additionally, if you turn on debug logging, the PayPal_xxxx_CURL.log file generated when the error happens should give you more details about exactly what PayPal is saying about the cause. http://www.zen-cart.com/forum/showthread.php?t=61199




