Joomdonation Ver: 2.8.0
Joomla Ver 1.6.3
While installing, I reviewed the language file (translation tab) and click SAVE.
For some reason it replace a line-feed with the letter "n" and all the resulting en-GB.com_jdonation.ini file was not readable by the script.
I had to replace the "n" with a CR-LF in a code editor.
The file is: /language/en-GB/en-GB.com_jdonation.ini
It fixed the problem.
Hope this helps someone with the same problem.