I was getting the error "HTTP/1.0 302 Found" when trying to configure some old PayPal IPN code that I had in PHP.
So I found on this forum that what I needed to do was open my paypal.inc.php file and change the following line:
$fp= @ fsockopen($this->paypalurl,80,$errno,$errstr,30);
to this one:
$fp = fsockopen('ssl://'.$this->paypalurl,"443",$err_num,$err_str,30);
Looks like the PayPal IPN is not taking non SSL connections anymore?