There’s a good chance that you have the right URL. There is an error in the plugin itself that isn’t allowing IPN data to be collected. You can make the fix in gateways/paypal.php on line 52.
$ipnlog = get_option(WPIU_OPTION.'_ipn_log');//$ipnlog - get_option(WPIU_OPTION.'_ipn_log');
It should be an equals sign, not a minus sign. There are number of other quick fix bugs that I’ve found elsewhere in the plugin. I’ve posted them in the support forum. I’m actually going to try to contact the developer directly today to see if I can be added as a collaborator to make the fixes and maybe add some features.
If you are making a custom template, your notify_url should be something like this. All the information is in the template that comes bundled with the plugin.
<input type="hidden" name="notify_url" value="<?php echo add_query_arg(array('action' => 'wpiu_paypal_ipn', 'invoice_id' => get_the_ID()), site_url('/')); ?>">