So some folks have complained about the paypal sandbox and the performance on the forums. PayPal has been our primary processor primarily because of its international coverage and decent api's. We set up most of this a couple years back and other than periodic testing, have not really used it too much. However with the 2.0 restructuring, we introduced a few bugs in the process and spent a bit more time on the paypal sandbox than normal.
Kinda sad to see how such a large company like Ebay can allow a core service to degrade to such an extent so as to be unusable. Both Kurund and I had problems testing some very simple stuff. I'm glad we are not trying to figure out the API at this stage, since that would have been an exercise in futility. I checked the paypal forums to see how long this has been happening. Seems like their sandbox environment has been quite bad for at least the past 6 months. You can read more details here, and here. In the past our experience with paypal customer support has been quite bad, with folks there refusing to acknowledge / investigate the paypal / soap / php 5.2.x issues we've had with recent 1.x versions.
Maybe its time we expanded our options and think of using another payment processor as our primary one. Its too bad that Google Checkout does not support recurring contributions.
In general we avoid ranting on such stuff, but this one was a bit over the top and needed some attention :)