Just to let everyone know. Sandbox does not work well with OJS. As a matter of fact it does not work at all.
I finally just went live with the submission fee and sucessfully made a test payment. It showed up in the records.
For those of you that need to know. When you set the IPN at your paypal account, just check the IPN box and make sure that nothing is in the URL box. For me it defaulted the http:// and until I had enough sense to delete the http:// and leave the box blank it finally worked. OJS seems to send a url to paypal and it responds. Set the payment to a small amount late at night and try it. You can always credit yourself and absorb the 3.9% fee. Then change it back to what you want to go live.
We never could find the path that OJS sends but in looking at the tables in our MySQL database the payment was found.
Neither the OJS documentation or the PayPal documentation is correct on this issue. Fortunaely through some experimentation and using the post by others we were able to work this out. I will post another reply with the name of the MySQL table to look in soon.
Looks like we have finally found a resolution.
Finally this is not a criticism of OJS but of PayPal. Seems that with as many journals that are hosted using OJS and using PayPal that PayPal could provide a better solution for testing. My humble opinion as a newbie here is that PayPal is not delivering as promised.