Disappointingly this still hasn’t been fixed – [I feel it’s my duty to post this response on all threads relating to this topic!]
Hi all, having driven myself totally crazy trying to sort this out for the past few weeks, I’ve finally sussed it (annoyingly before reading Reager’s suggestion).
However, my fix only requires editing one line of code so it might be easier for some people.
SO – bring up merchants/paypal_multiple.php in your favourite text editor and change this on line 119 (in the latest version at the time of writing):
$local_currency_shipping = $item['pnp'];
to this:
$local_currency_shipping = $item['pnp'] / $item['quantity'];
And PayPal is fixed! It works for international payments, domestic, etc etc. No more trying to work around it with weights etc. Woo!