Had to uninstall this after upgrading to 4.1.1 (and after reverting some templates) but then re-installed and it's working just great, but when you search for the code in the template in order to add the new code below it, search for this code instead;
Code:
<vb:if condition="$show['postlink']">
<li><a href="{vb:link group, {vb:raw group}, 'do=message'}" rel="nofollow">{vb:rawphrase new_discussion}</a></li>
</vb:if>