How to setup a Fundraising website?

I am new to WordPress and PayPal. Please excuse me if my questions below looks wordy or stupid.
I somehow can't seem to follow the installation procedures and can't get anything done.

In the installation document:
(1) On page 6 "PayPal Settings", do you mean that I must register in and finished doing some sandbox testings before setting up the "Simple Payment Options" and "Advanced Payment Options"?
This is because I did setup an account in PayPal Sandbox but don't know how to test it out!

(2) I manage to work till the beginning of page 11 and tried to follow your "cheat sheet for the application" information. But it seems that I need my new Fundraising website layout all done before submitting the official application to x.commerce.
This is because as you mentioned in the section on "Testing information", x.commerce will step through my website's payment flows.
However I find that the "Permalink settings" on page 12 has been moved from "Presentation" tab to "Other" tab; and three lines of parameters "Fundraising Directory Location", "Checkout Page" and "Thank You Page" to be filled-in does not exist under "Permalink settings".

Please help.
Thanks a lot,