Paypal and the gform_pre_submission hook

I've been setting up my first set of forms which use the PayPal add-on. (Works really well by the way).

I got the form hooked up to the Paypal sandbox without a problem, but I've run into problems with the form pre-populating the State/Province drop-down in Paypal (when using a credit card for payment).

I initially thought the problem was because I was using an abbreviation for the state (NSW) instead of the full name (New South Wales) which appears in the Paypal drop-down. So using plugin method suggested in http://forum.gravityhelp.com/topic/abbreviate-city-fields, I created a plugin to hook gform_pre_submission hook().

This didn't work. So I deactivated the plugin, and manually typed 'New South Wales' into my form, but Paypal still did not recognise it. The state drop-down was still blank, even though 'New South Wales' is one of the states listed.

Can you help? Is this a problem with the beta Paypal add-on, or something else?

Thanks, Bruce.