Before you yell at me, I've scoured the web as best as I know how and I've also read the docs on the woocommerce site.
Under WooCommerce > System Status, I'm showing the following, which is good:
fsockopen/cURL Your server has fsockopen and cURL enabled.
WP Remote Post Check wp_remote_post() was successful - PayPal IPN is working.
When I checked the log, however, I'm showing this:
12-12-2012 @ 21:34:34 - Received invalid response from PayPal
And above it somewhere:
[body] => INVALID
[response] => Array
[code] => 200
[message] => OK
I checked out woocommerece-admin-debug.php and it looks like 200 code means that IPN is working.. but then I'm not sure why I'm also getting invalid notices.
I hope that someone could help me out. If you need more info from me, please let me know. Thank you.