First time around I had trouble with this - however I think it was an error on my end (the paypal button was created with the secondary username).

I contacted the author and received a copy of the new upcoming version of the component and the button creator within a day.

After figuring out that the button id I was using was causing my problems, I recreated the button, plugged in the HTML (have not tried the button generator), and on the first re-test, everything worked perfect.

I receive the email I defined in the "messages" section and I could successfully login using the paypal generated username and password.

I then cancelled my membership in paypal, logged out of the website, and my account was successfully blocked.