Other users are experiencing the same problem with PayPal on the upgraded version 1.7.0.2. I resubmit the question here as it was not originally asked in the right category.
“We are looking for a little help..... The credit card processing works fine, but the Paypal option has problem with the Magento store.
In fact, when choosing “Paypal” it directs you to the Paypal site, asks the user for his/her Paypal log in credentials. Successfully logs into Paypal, allows you to choose your payment method credit card, bank account etc. After you process this information and click send money it brings you back to my site to a www.example.com/paypal/express/review/ and will not allow the order to process any further. There are two buttons at the bottom of this www.example.com/paypal/express/review/ page “update order data” and “place order” both do not work.
Attached are screen shots of the page I’m referring to.

Click thumbnail to see full-size image