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gutterboy's post in Paying By Paypal (Sandbox) Not Passing Back Payment was marked as the answer
Nothing to see here. Move along..... had the incorrect paypal address set for the sandbox account.
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gutterboy's post in Not Getting Lost Password Email For Admin Account was marked as the answer
Ok, seems the issue was because the from address wasn't a real email address; once I changed it to a real email address it worked fine.