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I have figured out that if you checkout with a $0 amount on checkout that the Paypal button/image does not appear when it should. Personally, I think this is a bug if you have Paypal as your checkout method then the Paypal button should always appear regardless of the amount. I verified this by adding a $0 dollar amount as one of the options in a pricing scheme for a product with other products with an amount greater than zero amount. The Paypal button/image only appeared when the dollar amount was greater than $0.
I hope I explained this okay.
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That's by design. You can't use Paypal with zero amount, so the button is not shown.
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