The global test-mode is set to false on line 5 of the gateways.php file. That is where you should update it instead of on the page.
When you look at that file are the credentials for the username and password correct for your test-mode account?
Have you created a test-mode user?
I honestly don't use test mode. I usually do live transactions and refund them since paypal also refunds all transaction fees.
What page on the site can I go to to add items to the cart and check out? I'll take a look and debug to see if I can find anything or at least get a relevant error message.