By default, Firefox 3 prevents users from installing any extensions that do not offer a secure connection for automatic updates. This prevents users from being victims of hijacked update URLs.
But for developers or people installing extensions they know they can trust, it is a pain.
Luckily it is easily disabled by:
- Enter ‘about:config’ into address bar, hit go
- Right click somewhere in the list of keys below. Select New->Boolean
- Enter ‘ extensions.checkUpdateSecurity ‘ as the name
- Select false as the value
- Reattempt installation of your plugin.
Ran into this problem when installing Extension Developer’s Extension while working on Read It Later.
Found the solution at MozillaZine (via Google)