Unable to process payment. Please contact the merchant as the shipping address provided by the merchant is invalid, and the merchant has requested that your order must be shipped to that address.


In Magento Community 1.7.0.2 you need to copy the file:
/app/code/core/Mage/Paypal/Model/Api/standard.php

to:
/app/code/local/Mage/Paypal/Model/Api/standard.php

and change line 238 from:
$request[‘address_override’] = 1;

to:
$request[‘address_override’] = 0;

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