I regenerated my .htaccess and .htpasswd files today using only my sandbox merchant account and password, and set the CHMOD on my googlecheckout directory to 755. These actions eliminated the error message above and replaced it with this new one:

We timed out waiting for your server at http://www.Jay42.com/googlecheckout/responsehandler.php -- the error we got is: Read timed out Your server must respond faster to merchant calculation callback requests.

Am I getting warmer....or colder?