These instructions are packaged in the GC kit I have:
4. .htaccess Basic Authentication Mode with PHP over CGI? If your site is
installed on a PHP CGI you must disable Basic Authentication over PHP.
To avoid spoofed messages (only if this feature is enabled) reaching
responsehandler.php, set the .htaccess file with the script linked
(
http://your-site/admin/htaccess.php).
Set permission 777 for
http://your-site/googlecheckout/ before running
the script. Remember to turn back permissions after creating the files.
Also carefully check the callback value on Google.
If you need to compare settings to a known good system (on ZC, Google, or both) let me know and I'll list them for comparison. Could be one little checkbox is wrong somewhere.
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