Reply To: PayPal IPN not working

When opening the ipn script the message “A file permissions error has occurred. Please check the permissions on the script and the directory it is in and try again.” shows up. I’ve never heard of that before and the plugin can’t prevent you from accessing files. As you say you already set the CHMOD to 777 maybe try to do so for the whole folder.
Google says it may be related to the .htaccess file as well. You can generate that by saving the wordpress permalink settings again. Helps often with access errors.