FYI: I did try the PayPal updated sandbox environment with my App Engine 
app a few weeks ago, and it seemed to work okay.

An issue was opened several years ago requesting better documentation 
around these concerns, please star it to increase the priority:
https://code.google.com/p/googleappengine/issues/detail?id=5266

Also, another user has opened a new thread regarding this issue, and Nick 
from Google has responded:
https://groups.google.com/forum/#!topic/google-appengine/oinyMmcoWOg

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