I was having this problem but did the following:
- Updated to WP 3.0.1 (which is looks like you’ve already done)
- Deleted the old version of the plugin (pre 2.4)
- Installed plugin version 2.4
- Jumped through the hoops to call my website an application
- Got weird php error
- Updated .htaccess to included php5
Just posted today and it worked no problem. Before I updated everything I had the same error.
Hope you get it working
I had the same problem and apparently had done the same thing as eurotransient – copied the extra space at the end of the API – thanks for the help eurotransient.
It would be a good thing if this plug-in was able to verify bit.ly API keys much like it verifies your Twitter account.