Twitter Tools 2.0 won’t authenticate at Twitter

I run latest WP, and the plugun worked fine since I installed it a few weeks ago. Last week it stopped working for no reason, I don’t remember doing any settings changes. Now when I try to Test Login info I get “Sorry, login failed. Error message from Twitter: This method requires authentication.” Tried deactivating, reactivating Akismet and Twitter Tools as some people here recommended a while back, with no results.

Also, is there an alternative plugin that sends WP feed to Twitter using bit.ly or other short url service?

Thank you.