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+1 for the solution, I had run into the same issue.
The IPN setup instructions don’t indicate that setting it to the eStore’s IPN handler could cause problems, nor does it suggest setting it to something benign like the website’s homepage. I did get from the instructions that the eStore replaces the value per-transaction, but with no other suggestion with what to replace it with, I thought (incorrectly) the IPN address would be “the best choice.”
cheers,
..dane