Michael, I am glad to know you managed to track down the reason and resolve the issue, but I am not sure what email address in PayPal PRO module you are referring to.
Could you please share a screen shot or tell exact path to the setting in your admin back-end? X-Payments does not ask for any "orders department email address" and has no "company settings" page. It looks to be a setting in X-Cart admin back-end.
I just want to add correct instruction to
http://forum.x-cart.com/showthread.php?t=68718 and update X-Payments troubleshooting at
http://help.x-cart.com/index.php?title=X-Payments:Troubleshooting