I haven't gone through the entire process of the form as I don't want to submit real money through paypal but I wanted to know if after the user makes a payment through paypal if it takes them back to my website?
I would like to make a "Payment Confirmation Page" with some additional instructions on it. Can you let me know if this is possible to do?
Yes. After users complete payment at Paypal, they will be redirected back to Payment Complete page. On this page, the message (which is Configurable in Payment Form in the config option Thank you message) will be displayed.
If you want to know the code to display that page, it is components/com_pmform/views/complete/tmpl/default.php