The first time you start Paypal Tools, you will be prompted to fill in your basic information:

The only box that must be filled in on this page is 'e-mail'. This is for the e-mail address you use with paypal.

The other boxes are:
Store Logo Image Location: Optional, this is the logo that will appear on the upper left hand corner of the shopping cart when an item is added. If left blank, your name will be shown in text instead. You should use a secure ("https://") link for this value.
Button Image Location: Optional, this is the image that you will be using for the 'add to cart' button. If left blank, the paypal default button will be used.
Purchase Successful URL: Optional, this is the url of the page that your customer will be taken back to after the purchase is complete
Purchase Cancelled URL: Optional, this is the url of the page that your customer will be taken back to if the purchase is cancelled during checkout.

Once you have finished with the options page, click 'Save and Close'. Your options will be saved, and you will not be asked for them again.

Links vs. Forms/Buttons:

The two main things that Paypal Tools is designed to do are:

-Make Link URL's for use with buttons/images/text located on your website.
-Make Forms which contain buttons and options to be placed on your website.

You should use a Link if:
You are not using options and you want to add links to buttons/text that is on your site. The most useful example of this feature is found when you want to use rollover buttons on your site. The Form option will not allow rollover buttons, but this option will. If you do not know what a rollover is, then you should probably just use the 'Make a Button/Form' feature.

You should use a Button/Form if:
You need a complete set of html codes that will constitute a link; or, if you are selling an item that has 'options.' For example, perhaps you are selling T-shirts that come in Small, Medium, and Large. With the Button/Form feature, your customer can specify sizes (or any other option you can think of).