Can't get iTunes Store to accept PayPal

I can't get the iTunes Store set up to accept PayPal as my payment method for iTune Store purchases.
I select PayPal as my method of payment, and am directed to PayPal web site, with the following screen shot.
From there I go to the page that I authorize PayPal as my payment method to iTunes Store.
After agreeing to this, I get a confirmation screen saying that I have successfully created a billing agreement to iTunes Store.
After pressing the Continue to iTunes Store button and trying to make a purchase, I get this. Note that I am already loged in.
After entering my password yet againand clicking on BUY I get this.
I confirm I do indeed want to buy, then get this. ( can't upload any more images )
At this point I am asked my password yet again, and am right back to the first immage shown in this thread.
I have tried doing this using Internet Explorer, anf Firefox as my default browser. I have also contacted PayPal, and they said there aren't any problems on their end.
How do I buy tunes?
Greg

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