Something seems to be wrong. I spotted, that my twitter connection out of drupal seems to be broken. Drupal just displayed the message "not authorized". Nobody could guess, that this message would cost you more than an hour to fix. Hopefully you can save some time, following this guide.
So let's go! First of all, let's reveal the cause of this message: Twitter has changed its login-methods and you have to use OAuth.
August 31, 2010 Basic Auth has been deprecated. All applications must now use OAuth
In order to make you setup work again, install the 6x-3.0-beta2 release of the twitter module. In order to use OAuth, install the Drupal OAuth module as well. Make sure you install the old 2.x branch (nobody tells you that fact but the new version is incompatible with twitters oauth!). With OAuth some other modules are needed to proceed: Autoload, Inputstream and ctools. Make sure you run update.php and clear all your caches.
Now you're ready to go to register your website as an application at twitter. Visit http://twitter.com/apps/new and fill out the forms necessary. There are only a few options you have to answer right:
Application type: Browser
Callback url: http://yourproject/twitter/oauth
Default access type: Read & Write
That's all you need. The next step provides you with your consumer key & secret, which you have to enter on site configuration / twitter. After adding this information, go to posts and select the content types, you want to add to your twitter timeline. If you're ready, jump to site configuration / oauth and setup the cryptography method to HMAC-SHA1.
The final step is to add you twitter account to your user account. Proceed to User Management / Users and edit your user. There should be a tab names Twitter accounts and a button "add account". Simple use your account name and after some OAuth request if you want to connect your account to your drupal installation you're ready to go!
Hopefully everything works as expected!
Image credits for the OAuth logo goes to factoryjoe