MICHAEL WENYON When Safari downloaded this, it had a '.bz2' extension, even though the file was actually the dmg itself! I just deleted '.bz2' from the name of the file and then it opened and mounted. Installation of the application itself by drag and drop was OK to my windows-formated USB drive (FAT 32) and it all works same as desktop version after transferring preferences, including OTR encryption. Great!
If this extra '.bz2' extension happens to you *do not* double click the file while it is still named with the '.bz2' extension--that will just launch a process that actually messes up the dmg and renders it unreadable by the system.
(Version 1.2.1r4.0)