3 - Admin->Modules->Payment->PayPal IPN -> Edit .... what is the Email address you entered there?
Does this email address match your "Primary" email address according to your PayPal profile at paypal.com ?
4. In the same screen, scroll down to the "Debug Logging" section, and set it to Log to File.
Then do some test transactions.
Perhaps even have one of your customers repeat a transaction that was failing.
Look at the logs. Perhaps zip them as an attachment here, so we can review them for potential problems.
The logs will be stored at /includes/modules/payment/paypal/logs
(You'll need to make that folder writable ... chmod 777 permissions )
I don't think this is a problem with the module, and thus I'm not convinced that the logs will be very useful in your case, since I suspect there's something misconfigured in your PayPal.com profile to cause the problem you mention.
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