Thanks very much for your help _CONEJO, clicking on returning to merchant now works ok with Friendly URLs.
I've only changed the config.php, and it's working ok (in sandbox mode right now), without re typing my paypal config, not sure how is it possible.
The key was not setup by me in the config file so I presume it was generated automatically, you guys might wanna have a look into it why it's generating 58 chars long keys.
Anyway, many thanks for you help and your patience, I do appreciate it.
Janos