Ok, thanks Hacks. Just set up a dummy paypal & changed store to this new account. Set up dummy item with 10cent cost to test it & purchased it from myself.
It appears to all work, however without an IPN, no items to be shipped show up in the notifications at the bottom of the store. However if you open Settings > Transactions is all there, looks like it should.
Both emails recieved email notifications & both paypal accounts registered the transaction correctly.
It looks to work ok apart from no notification at the bottom of the store, will need to check transactions manually.
Regards,