You're not missing any plugin. Just check your hosting's mail service and also check the mail log.
You may have missed the checkbox “Notify me of follow-up replies”. That's why you're not getting the notifications about the replies here.
Who told you that, “Mail Notification and Paypal Adaptive” are the major problems ?
As I've seen a lot of people complaining about the email notifications I assume I can label it as “Major Problem” with no offense.
PayPal Adaptive was suppose to work out of the box as it's developed by you as an add-on of the theme. Spent several days (10 days) trying to put it to work. It does not work at all. So I guess I can consider it a major problem too.
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