To create a Paypal Admin User and set up access privileges:

Login to your PayPal Account.
Click on “Profile”.
Choose “My Account Settings” (from the left sidebar).
Select “Manage Users” (6th option down)
Select “Add User”.
Complete the Form, entering the users full name, the ID you want them to use (a username) and a password.

Note, the login ID is “not” an email address, it’s just a unique user name you make up. The unique user name is used to log in along with the password you assigned.

Next you need to assign the privilages. The privileges listed below are the typical business operations that can be performed on PayPal. If the user is just going to be setting up paypal buttons in the merchant side of the account, you can ignore all of the Accounting section, tick the ‘View Profile’ and ‘Edit Profile’ choices in the administration section.
Next click save and its done. You can then logout and test the login ID and password yourself.

List of Privilages you may assign:

Accounting Section
* Send money – Allows users on your account to pay almost anyone with an email address in the countries that accept PayPal, with no fees.
* Request money – Allows users to request that someone send money by email or through invoicing.
* Add funds – Lets additional users add money to your PayPal account from your bank account.
* Issue refunds – Lets your users send a full or partial refund.
* Withdraw funds – Allows the user to withdraw money from your PayPal account to your bank account.
* Cancel payments – Lets the user cancel unclaimed payments for you.
* Distribute mass payments – Lets another user on your account pay large numbers of people using only the recipients’ email addresses and the payment amounts.
* Set up recurring payments – Allows the user set up automatic billing cycles for your customers’ credit cards or PayPal accounts.
* Handle authorizations and settlements – Lets another user perform this task for you daily.

Integration Section
* Activate and authorize APIs – Allows your developer to integrate your website with our products by setting up PayPal secure API credentials and permissions.

Administration Section
* View balance – Lets the user view the available balance shown on your Account Overview page.
* View profile – Allows another user on your account to view your profile’s settings.
* Edit profile – Lets users add, remove, or edit information on your PayPal account for you.
* Discuss account with Customer Service – Gives the user permission to discuss your account with our agents. All you have to do is accept our Account Administrator Agreement after you select this privilege.

Virtual Agent
*Schedule and download transaction history and run settlement reports.