I came back the next morning and re-ran the transaction scripts...without any changes everything processed correctly. The real issue here is the glitchey PayPal sandbox environment. I have had more then one occasion where the Sandbox will just decide to either stop accepting IPN requests or start to throw errors for perfectly good transactions. In this situation I wasted a few hours trying to run down this non-error. My only option is to start steering clients away from using PayPal or simply charge more for the anticipated wasted time during development when a client insists on using PayPal.
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