Thanks
PayPal location is set to: All Locations.
Yes, I used the same address for both, Guest and Returning Customer. I did have a new customer who tried but couldn't checkout as a customer but can as a guest.
I have just looked at Payment, PayPal option: Total Order Maximum: Does this maximum mean the Value of the order in Money or Number of items?
I think that is the problem, it should be set to the max. money value of the order.