PayPal IPN doesn't handle refunds properly.

[GoogleCodeExporter]

What steps will reproduce the problem?
1. Set up a store with PayPal IPN integration 
2. Process a successful transaction
3. Refund that transaction

What is the expected output? What do you see instead?

A "failed" order email goes out from the system, and the order is incorrectly 
marked as a failed order. Should be marked with the "returned" status and 
handled appropriately.

Original issue reported on code.google.com by subim...@gmail.com on 14 Sep 2010 at 6:56