My Automatic Downloads through My Paypal IPN not working

any help anyone can give would be greatly appreciated. I tried figuring this out on my own to the best of my ability, but now am quite stumped!

**Version: **I am currently running Version 1.37. As soon as my host has 1.38 version available I will be upgrading.

Site Location: http://www.crochetgarden.com/shop
An item at $.01 in case someone wants to experiment adding it to cart: *
http://www.crochetgarden.com/shop/index.php?main_page=product_info&cPath=1_4&products_id=245
**
Overview:*
I sell files on my site, that the customer can order a PDF (free shipping) or Hardcopy. On the zen shop, I have cloned the per item shipping for USA, Canada, then outside USA and Canada for those ordering hardcopy. Everythign else is free for PDF. When setting up products, my settings are:

Product is Virtual: No, Shipping Address Required
Always Free Shipping: No, Normal Shipping Rules

Problem
When a person "purchases" a PDF, they get to the page of checkout success, and then wait to be redirected. When they are redirected back to the site, nothing shows up in their history in their account, no record of the payment. They click on my account, and nothing there. On my end, in the admin panel, I see no record in the zen admin of the payment. I do receive a paypal notification payment through my email, but with no product information:

Total amount: $0.01 USD
Currency: U.S. Dollars
Item/Product Number: 1
Transaction ID: 65D63404E87d3810A
Quantity: 1
Item/Product Name: Crochet Garden Purchase
Buyer: <customer's name>

Anywhere I look in the zen admin panel, I find no record of it. Just one paypal notification in this manner, no description of what they purchased etc.

Automatic downloads do work with a money order (if I take the money order module and set it from Default to Delivered). This is my first time setting up the shop, so it was not like this was working and then stopped.

My configurations:
I went through the troubleshooting steps in Wiki here http://www.zen-cart.com/wiki/index.php/PayPal as well as went through numerous threads here but am still unable to get automatic downloads to work.

In the attributes, I do have green buttons for the uploaded files.

**Attribute Settings: **

Title Value Action
Enable Downloads true
Download by Redirect true
Download by streaming false
Download Expiration (Number of Days) 365
Number of Downloads Allowed - Per Product 10
Downloads Controller Update Status Value 4
Downloads Controller Order Status Value >= lower value 2
Downloads Controller Order Status Value <= upper value 4
Enable Price Factor true
Enable Qty Price Discount true
Enable Attribute Images true
Enable Text Pricing by word or letter true
Text Pricing - Spaces are Free 1
Read Only option type - Ignore for Add to Cart 1

**
Payment Module Settings:**

(The ones activated are Zen Cart Free Charge Card, Check/Money order and Paypal IPN).
Modules Sort Order Orders Status Action
Authorize.net SIM authorizenet
Authorize.net (AIM) authorizenet_aim
Credit Card cc
Cash on Delivery cod
The Zen Cart FREE CHARGE CARD freecharger 0 default
Linkpoint/YourPay API linkpoint_api
Check/Money Order moneyorder 0 Delivered
PayPal IPN paypal 0 Delivered
PayPal Express Checkout paypalwpp

Paypal IPN Settings:

Enable PayPal Module
True
Business ID
[email protected]
Transaction Currency
Only USD
Payment Zone
--none--
Set Pending Notification Status
Pending [1]
Set Order Status
Delivered [3]
Set Refund Order Status
Pending [1]
Sort order of display.
0
Continue Button Text
Page Style
Primary

Mode for PayPal web services

Default:
https://www.paypal.com/cgi-bin/webscr
or
https://www.paypal.com/us/cgi-bin/webscr
or for the UK,
https://www.paypal.com/uk/cgi-bin/webscr
https://www.paypal.com/cgi-bin/webscr

Debug Mode
Off

Paypal Website Account Settings:
I have taken off all tax.
I never had any shipping preferences, as everything I sold on Ebay etc was PDF, except for the occasional hardcopy which I would just then an invoice. Same thing on my current website, shipping is already configured in the paypal buttons when added to cart instead of being configured at the paypal cart.

When I am in the profile in Paypal and click on "Shipping Calculations" there is nothing there except for me to "set up calculations," So I would assume my shipping is all turned off.

I am so stumped :( I must have something wrong somewhere... I am just so baffled, any help would be so great, or any pointers...

I also want to add some other information:

-This is a clean install
-Host is Dreamhost

• Unix system on Dreamhost
  -Download Chmod is 755
  -Pub is 777
  -The files are PDF files, with no funky characters, just names with underscores: file_name_name_anothername.pdf

I think I fixed it (UREKA!) While the shop was in testing mode, I had htaccess password and username on it. So that was most likely halting paypal's information to the site! I removed the .htaccess and voila, download was there!

But one other problem, which is hopefully a fluke...

I had someone test it, and she received the download (yay). However, in my email, I received 4 order confirmation emails for the same one order. Any ideas?