Dr Byte,
Thanks for helping me out :)
I have the IPN module enabled and all other setting are set as per the article you mentioned.
I set debug mode to log file and carried out a transaction. I checked includes/modules/payment/paypal/logs (logs is set to 777). Contents as follows:
Thu Feb 2009 15:20 -- IPN FATAL ERROR::No POST data available
Thu Feb 2009 15:20 -- IPN FATAL ERROR::Could not find stored session in DB, cannot re-create session
Thu Feb 2009 15:20 -- IPN FATAL ERROR::No saved session data available
Thu Feb 2009 15:20 -- IPN NOTICE::Got past language loads
Thu Feb 2009 15:20 -- IPN INFO - POST VARS
cmd=_notify-validate
Thu Feb 2009 15:20 -- IPN INFO - CURL INFO
HTTP/1.1 200 OK
,Date: Thu, 05 Feb 2009 15:20:52 GMT
,Server: Apache
,Set-Cookie: cwrClyrK4LoCV1fydGbAxiNL6iG=5ajAz5wJ0aw69hidkIZGEHbNaNG298njITj9sUy_00jwAGhp-zZHYyfeRMqxcs3YeOBGNDxdxUPFocfDOn9kD4qs5U92faz74clqqnltz1LnnoCHZN-Y9wHvZ5ezIQhk_2o2qW%7csY8SxasoFWBJyhnxDAELPpwbNtNZMvk9IFJFVjOBpJEXfX1jlXWdfZvxAu5_CvGxV-wXsG%7cFKLpcLexxNvwT8CdGCR9qCMxs0M0imwUxBb_hXXnp3QjI0u95I0LZz9_7l9B2IF9CXJ-fG%7c1233847252; domain=.paypal.com; path=/
,Set-Cookie: cookie_check=yes; expires=Sun, 03-Feb-2019 15:20:52 GMT; domain=.paypal.com; path=/
,Set-Cookie: navcmd=_notify-validate; domain=.paypal.com; path=/
,Set-Cookie: navlns=0; expires=Wed, 31-Jan-2029 15:20:52 GMT; domain=.paypal.com; path=/
,Vary: Accept-Encoding
,Keep-Alive: timeout=5, max=100
,Connection: Keep-Alive
,Transfer-Encoding: chunked
,Content-Type: text/html; charset=UTF-8
,
,7
,INVALID
,0
,
Thu Feb 2009 15:20 -- IPN WARNING::Transaction was not marked as VERIFIED. IPN Info = HTTP/1.1 200 OK
,Date: Thu, 05 Feb 2009 15:20:52 GMT
,Server: Apache
,Set-Cookie: cwrClyrK4LoCV1fydGbAxiNL6iG=5ajAz5wJ0aw69hidkIZGEHbNaNG298njITj9sUy_00jwAGhp-zZHYyfeRMqxcs3YeOBGNDxdxUPFocfDOn9kD4qs5U92faz74clqqnltz1LnnoCHZN-Y9wHvZ5ezIQhk_2o2qW%7csY8SxasoFWBJyhnxDAELPpwbNtNZMvk9IFJFVjOBpJEXfX1jlXWdfZvxAu5_CvGxV-wXsG%7cFKLpcLexxNvwT8CdGCR9qCMxs0M0imwUxBb_hXXnp3QjI0u95I0LZz9_7l9B2IF9CXJ-fG%7c1233847252; domain=.paypal.com; path=/
,Set-Cookie: cookie_check=yes; expires=Sun, 03-Feb-2019 15:20:52 GMT; domain=.paypal.com; path=/
,Set-Cookie: navcmd=_notify-validate; domain=.paypal.com; path=/
,Set-Cookie: navlns=0; expires=Wed, 31-Jan-2029 15:20:52 GMT; domain=.paypal.com; path=/
,Vary: Accept-Encoding
,Keep-Alive: timeout=5, max=100
,Connection: Keep-Alive
,Transfer-Encoding: chunked
,Content-Type: text/html; charset=UTF-8
,
,7
,INVALID
,0
,
Thu Feb 2009 15:20 -- IPN FATAL ERROR::Transaction did not validate
Not sure how to interpret this ...