This is the first time i've used a sugar daddy site and have little idea what i'm doing. I was smart enough to set up a paypal account so he wouldn't have any of my personal information, he set an amount at which he would send assuming i "passed his tests" then asked me to start by sending $29 to his account managers payapl so he would have my information, am right to think this is a scam?
You said that this individual was going to test you, and then...
asked me to start by sending $29 to his account managers payapl so he would have my information, am right to think this is a scam?
Regardless of if this is a scam or not (although it almost certainly is), that's not at all how PayPal works. If someone wants to send you money, all they need to know is the email address you have registered with PayPal. They can then simply go on PayPal themselves, and send you money. They do not need you to send them money first.
That should set off a red flag. If this person doesn't need you to send them money first, then why are they asking you to do so? It doesn't make any sense, and there is no good reason for them to ask you for $29. Think of it this way: if you were walking down the street, and a stranger came up to you and said, "I want to give you money, but first give me $29" you'd probably just say no and walk away (or even call the police, because this basically sounds like a friendly way to mug someone).