To set your store up to accept PayPal payments, click the "System" tab, and then select "Payments". On the payment screen, select the "Edit" link for PayPal. Enter your PayPal account's e-mail and then make sure to change the status from Disabled to Enabled. You can also change the default order status for PayPal purchases, or switch your account into or out of test mode. The recommended transaction method is "Sale" and the recommended order status is "Processing".