Help Payment not received

I found a post detailing my EXACT problem here is that post

http://www.zen-cart.com/forum/showthread.php?t=40816&highlight=coupon

Here are the details:

*I had a customer who made a purchase today and I didn't receive payment.

When I go to look at her order, on the top is this error message:

Warning: Invalid argument supplied for foreach() in /home/content/......./includes/modules/payment/paypal/paypal_admin_notification.php on line 27

She used a discount coupon and had a balance left.*

I think I have narrowed down to the restrictions on the coupon. Maybe I'm restricting them wrong. Please advise.

I am creating a coupon that gives an item away for FREE..What I have done is denied ALL catagories in catagory restriction, then in product restriction I allow the one product, I want to give away for free. The coupon works as long as they aren't purchasing anything. When they purchase something beyond that coupon it is skipping paypal.

Am I creating the coupon wrong? Any help would be greating appreciated.

And my version is 1.3.0.1

Ok sorry here is more info per the Code of Conduct

PHP 4.4.2
MySQL 5.0.21-standard

I am unsure what the server type means.

Thanks you,
Colleen