(D6.8 / UC2 beta)

My original quesiton was:

"I am testing with the PayPal sandbox. I definitely have the 'no paypal account required' option ticked in my sandbox seller account. I am using WPS and when I checkout PayPal only gives the option to login or create an account to complete the checkout.

Also, I am unclear on the difference between WPS and Express Checkout."

But before getting round to posting I have found the answer more or less.

1. I wasn't actually using WPS. I had turned off the UC checkout to try and get PP Express working, then changed my mind and gone back and deselected Express payment method and re-selected WPS. But because I had no UC checkout and the Express pane still showing on my cart screen I was actually using Express checkout. confusing just to describe it!

2. PayPal Express... basically it can't do the 'no pp account required' thing.
On the PP comparison table it lists that feature as 'optional' (https://www.paypal.com/uk/cgi-bin/webscr?cmd=_profile-comparison)
It turns out in order to use it you have to have a Merchant account and collect the credit card details yourself and forward them to PP via the API. More info from Yahoo here: http://ystoreblog.com/blog/2006/09/paypal-express-checkout-gets-speedier/

I don't know if UC supports that mode of operation, but I don't have a merchant account so in my case its irrelevant. Basically if you're a small-time PayPal seller and want the 'no account required' function you have to use WPS.

Hope this helps some other folks!