For google checkout not working:
in wp-content/plugins/wp-e-commerce/merchants/GoogleCheckout-XML.php
Change line 160
From: $state_name = $wpdb->get_row($sql, ARRAY_A);
To: $state_name = $wpdb->get_row($sql, ARRAY_B);
One problem was that Ecommerce checkout was sending the states as names and not the 2 digit state code, and for some reason one of the states was not being recognized by Google. Since google cant tell us which state thye think was misspelled, lets just send the 2 digit state code.
BING – it works now.