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I am new to paypal and the online store shopping, I am in the process of creating the buttons. Do I have to create a button for every item that I am selling on my site?
YES. You need a button for each item.
You can either use the online button creator to generate the code for you or else you can manually create the code. If you're new to this, suggest using the online button creator. I would also suggest that you download both PayPal's Website Payments Standard Integration Guide and Merchant Setup and Administration Guide from here. Both guides have tons of great info and examples.