Just thought I should post this, since this was a problem that many people were having before, and there seemed to be no solution at the time:
For those of you that installed the WP-to-Twitter, and wanted to use the bit.ly shortener, only to come across a error message that stated:
The query to the URL shortener API failed, and your URL was not shrunk. The full post URL was attached to your Tweet. Check with your URL shortening provider to see if there are any known issues.
Well, i just figured the solution to the issue!
If you are in the WP-to-twitter settings in wordpress, and at the bit.ly shortener you typed your "username" as your twitter name, and the API key from the bit.ly , then you are 50% right! But not 100% (which is why you are getting that error message!
The issue is not the API key, it's actually the username. I dont know why WP-to-twitter developers never address the mis-understanding.
To fix the issue (and to get the correct username and API key), log into your bit.ly profile. Once you are there, simply put this url into your address bar:
It will direct you to the correct username (not twitter name) and the API key. Simply copy and paste into the WP-to-twitter settings under bit.ly, and you are GOOD!
You can thank me later!