Testing Sagepay with Woocommerce get Error: 5003 Internal Server Error - wordpress

We're trying to test sagepay on a wordpress site with woocommerce and sagepay plugins installed. These are the steps we have been through and the results.
Entered all settings into the sagepayform gateway settings page in woocommerce, including Vendor Name, Testing (and Live) Encryption passwords, set Status to Testing, entered email adress etc.
created an account on test.sagepay.com
attempted to test the process by going through the checkout on the website (set up in a live testing domain)
When 'Place order' is pressed I get an error back on the test.sagepay.com website with HTTP Status Code 500, Error Code 5003 'Internal Server Error'
I did a test when the site was on my local environment which worked fine, now it doesn't.
Has anyone had any experience with this, any suggestions?

This is the result of Sagepay ending support for the test environment for protocol v2.2
From their notification email:
..please be aware that if you are testing accounts using our older
protocol, you will no longer be able to do so after 12th January,
2015.
You will need to move over to the v3 protocol and make the necessary changes to your code. More resources can be found within the migrate to v3 pages. The changes aren't vast, you mostly need to focus on the newly required fields and the string encryption.
A further note: production support for the v2 protocol ends in July 2015. Sagepay are very quiet about it but if your transactions are still going through on v2, it will show a warning in your My Sagepay account.

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