I think you need a shipping destination even for "No Shipping"
shipping method. It is needed for tax calculations.
If the user don't have a shipping address, you have to use "New
Address" link from Quick Finalize Order screen to create one. Then
first you have to choose the shipping address, then shipment method
and finally the payment method(all through radio buttons in Quick
Finalize Order screen).
Hope this helps.
Bilgin
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