Working with the Developers section of PayPal can be pretty bewildering at first,
but it makes more sense the more time you spend with it. Don't forget that when
using the PayPal sandbox, emails don't get sent to your normal email account, but to your development
email account.
If your payments are going through properly, but nothing appears in Form Tools, chances are
the IPN isn't configured properly. Try adding some mail("your@email.com", "subject", "message");
lines in ipn.php to confirm that PayPal is at least posting information to that URL. If not, you know
the problem is either with your $paypal["notify_url"] setting or with the setting you set up in
your PayPal account under IPN Preferences.
If you get stumped, try posting either in our forums or on the PayPal developer forums (listed
below)