Permission problems with upgrade to 1.3.8

I have upgrade to 1.3.8 but lost all availability to Paypal Pro and Paypal. A Permission Denied keeps coming up for all PayPal payment modules as well as all documentation for paypal in the docs floder. Very strange the permissions when set to 777 in attempt to override the Permission error on all Paypal related files still comes up with:

You don't have permission to access /XXXXX/admin/modules.php on this server.
Additionally, a 404 Not Found error was encountered while trying to use an ErrorDocument to handle the request.

Any clue to what is causing the error and how to fix it?

What does your server's errorlog state for the cause of the rejection?

Depending upon how the Server is setup, your permissions of 777 could be causing the problem. You should go back to default settings which is 755 for directories and 644 for files.

I do believe in the upgrade documentation there was mentioned that after the upgrade, you have to uninstall/reinstall the PayPal module.

Thanks DrByte for the clue to the error logs.

The problem was with the server permissions. When my server is taken offline and brought back online some permission setting were lost. The Web server seems unable to read files in a sites Web directory and responds with a "permission denied" error message.

The upgrade documentation does mention that after the upgrade, you have to uninstall/reinstall the PayPal module as Website Rob stated. And I did so.

However the 1.3.6 I am upgrading from offers only paypal certificate and the 1.3.8 uses a paypal signature, so the reinstall had no bearing. I completely did a new install and bulled over the templates and database changing the config.php files and it worked once the permission were all replaced.

Thank you for both replies!