We had this problem once in the past and the alternative was to manually charge the customer's credit card with the PayPal virtual terminal. Recently we're getting more orders, particularly from the UK, and we would like to see if we can fix this problem.
The issue is that the PayPal gateway requires that the customer enter a "State or Province" during checkout in order for the order to be validated by PayPal. Well, there isn't a "State or Province" for London, UK...
Has anyone else encountered this? If so how did you work around/fix it?