I have version - 2.0.2 and also mine is not working. I tried each and every possible solution provided in moodle forums but nothing changes.
I have followed steps from this forum http://moodle.org/mod/forum/discuss.php?d=16883 but still no luck. I have checked with sandbox and its working really great. Its weired that same options are not working on paypal. Even changed port no from 80 to 443 but as I said no luck.