I still have no luck with the error. :(
When I say its working, I mean on Paypal I can see in my account history that recurring payments are happening daily (my recurring interval is 1 day). The orders on the website are not getting updated or anything. I have to check in the dblogs everytime for the IPNs, which is bad as I dont want them on my live site.
Anyways, can you post the error that would give us some idea as to whats wrong.