There seem to be some issues with IE8. Like on your own demo page http://aksandbox.webege.com/?p=1 Line numbers gone, tool bar do not work. I see that on own tests as well.
I tried to disable this and that, no good.
However while writing this I noticed this site http://kampungtoys.com/tag/crayon-syntax-highlighter/ using 1.9.9 and there it works in IE8! How come not on your demo site or any of mine then? That site use jQuery 1.7.2 like me so that cant be it. I added question mark to title just to cover my butt, heh.
I test in Virtualbox but should be valid enough.