For others having issues (per my email to steve over the weekend)...
1). You must have PayPals Web Payments Pro Service ($30 per month). Standard, Premium, or Business won't work. (Auth.Net QuickCommerce at
1nbcard.com/mmp is $15.99 per month)
2). Don't use test mode. PayPal requires an account on their test server for this to work. Most people don't.
3). Byran at AppNinjas did a video for their iPhone product that is very helpful. Setup is exactly the same as ours.
http://www.youtube.com/watch?v=glTkYSStPvs 4). If you are still having problems, we'll need to dig in a bit deeper. PayPal has two different APIs that can be setup in your PayPal configuration. Their older API configuration sometimes used for shopping carts can 'only' be used with one IP address. This would mean that MMP product wouldn't work with PayPal as long as the API was configured for your cart.