It's a Paypal issue
With extreme frustration I discoverd that this issue is a Paypal issue.
Here's the deal. My client has a website with a shoppingcart that uses their own gateway. In addition, the shopping cart adds a Pay With Paypal button for express checkout with paypal.
In order to do this, you have to request an API Certificate from Paypal. When you do this, Paypal says (according to their tech support) that you can NOT have two API credentials and/or signatures on one paypal account.
If you use the API credentials/certificate you can NOT also have an API Signature also. The ONLY option is to have two paypal accounts.
The only option I have is to disable the Pay with Paypal button and remove the certificate and then create a new api with a signature.
The one thing that might save my bacon is that Paypal allows you to create a sandbox account. I just got a call from Paypal so we'll see if that works. I'll keep this forum posted.
Thanks for your help...sorry for the pain.