dpd1 - 3:14 am on Jan 19, 2011 (gmt 0)
Well, I picked one item, checked out, picked the shipping state, put in a fake address with a zip, and it took me to the usual PP payment page, where it had the proper item and everything ready, which I assume would work like normal. So if something is messing up, it would have to be after that. If you haven't, I would call PP and see if they can find anything wrong with your account.
Now that I think about it... Why is there a full name and address page to fill out first? When they get to PP, they're either going to have an account already, or if they use a card, they're going to have to fill all the info out a second time, correct? You don't have it setup to auto fill from the first page somehow, do you? That could be your annoyance that sends them packing right there.