Yeah, this is a total bug. I've been banging my head on this for several hours! Everything is set up properly and appears to work on paypals end but when it returns you to zen cart you get no payment methods and cant continue. I'm new to zen so i haven't had anything working before and was thinking it's one of these wickedly customizable options that takes some more digging.
It's just as Aziph explains.
Having only paypal express enabled, configured correctly. Add product to cart, fill out paypal info (can even be new customer w/o paypal login). Paypal communication works fine, logs read fine, ipncheck works fine. Paypal brings you back to your store and you get page like jensen_tw first image above with no way to complete check out.
I tried the other options mentioned above and none of them worked. The only working solution was to enable another payment type. My case I did the money order.
I hope there's a fix or workaround to this very soon.
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