thats odd if didnt generate the form tags...perhaps its where you positioned your code? was it already in another form on your page, maybe thats why it didnt generate the forms. there is always a reason for something to go wrong and usually its something so simple like where things are positioned. have you tried manually entering the form tags yourself?
I think I had used the paypal ecommerce toolkit on a simply page. there was no other generated code except for the form....the form tags were:
(I only wanted something simple, hence why not many input tags..have you tested by excluding any of the other input tags you got?
<form action="https://www.paypal.com/cgi-bin/webscr" method="post" target="_blank">
<input type="hidden" name="cmd" value="_s-xclick" />
<input type="hidden" name="hosted_button_id" value="XXXXXXXXXXXXX" />
<input type="image" src="https://www.paypalobjects.com/en_GB/i/btn/btn_buynow_LG.gif" border="0" name="submit" alt="PayPal - The safer, easier way to pay online." />
<img alt="" border="0" src="https://www.paypalobjects.com/en_GB/i/scr/pixel.gif" width="1" height="1" />
</form>
Chris