I just installed the newest IPN module according to the instructions: I disabled the PayPal method in the Control Panel, moved the files out of the way, and copied the catalog/... files from the distribution archive into the production catalog/. Then I replicated all our v1.1 settings for certificates, etc. in the Control Panel.
Then I did a test order.
The payment went through fine, but the order status in the osc database did not change from Preparing [PayPal IPN]. Previously the update occurred almost instantaneously. Is there a problem at PayPal's end or did I miss something while setting up the new module?
This test was performed in our production store, with the production PayPal server, with real money from my personal account, so we know that it's not a matter of test vs production environment.
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