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These steps are neccessary to establish a connection between a drupal site and a twitter account. This new way is required since twitter changed their third-party authentication to oauth on Aug. 31 2010.

1. Module OAuth in Version 2.02
2. Module Twitter in Version 3.0beta3
3. Activate module OAuth
4. Configure module OAuth (admin/settings/oauth):
   1. OAuth cryptography: RSA-SHA1
   2. Save
5. Call update.php, if the twitter module was used before the OAuth change
6. Register a new application at twitter
   1. Log in to twitter in your browser
   2. Open the url https://twitter.com/apps/new
   3. Fill in the aplication form:
      • Application Name: distinguished name
      • Description: at least 10 characters to describe your application
      • Application website: your drupal web site url
      • Organization: the name of your drupal web site
      • Website: your drupal web site url
      • Application Type: Browser
      • Callback URL: http://{www.mydrupalsite.com}/twitter/oauth
      • Default Access type: Read & Write
   4. After you submitted the form, you receive your consumer key and consumer secret.
7. Enter these keys into your drupal site's twitter configuration (admin/settings/twitter).
8. Set up general twitter settings (admin/settings/twitter/post)
9. Link your user account to your twitter account: My account » Edit » Twitter Accounts » Add account
10. You get forwarded to twitter to allow the connection.
11. If all users will post using this twitter account, you can make the account global.

Taken from: http://drupal.org/node/404470#comment-3415614