I have managed to work out the issdue and it now works for me. Login to your PayPal account and go to Profile > My Settings > Security Key > Update Highlight your VIP token and select Deactivate > click Deactivate Security Key, it will now show as Deactivated. Highlight your VIP token and select Activate, enter two codes from the token as instructed, click Activate. You should get a message "Your security key is now active. It should now be re-synchronised. When paying for purchases, use your PayPal password followed by the Security Code and it should now work. Use same process to login to PayPal also.
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