This is a long standing problem. When the Buy Now button is output (a standalone form), it doesn't include any variation information. As a result, any changes in the variation are ignored. Worse, when you press the Buy Now button, it submits to Paypal with the value of the parent product including whatever price is stored on the product record.
This will require changes to:
wpsc-core/js/wp-e-commerce.js
wpsc-includes/display.functions.php
Patch coming shortly