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New Post: Paypal showing Status "Payment not verified"

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There's obviously something obscure going on with this.

If I had tried everything else and it didn't work for me, then I'd first try and confirm that I can make it work using a version I already know works.

By that I mean I would set up a fresh copy of the last version of DNN 6, configured as in the setup guide here on Codeplex. Then I'd put the store on it with a single product and a live non-sandbox PayPal account and try and buy it. If that doesn't work then the issue will either be the DNN 7.x release or something else altogether.
Regards
Rob

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