Okay the fix was easy. All the confusion before was me messing my test files up LOL
This mod worked from the beginning in 5.3 and 5.4
I found a bug with Josh's IIP 5.4.3
In your pal directory editconfigpal.php
find
include "./languages/${$config['cookieprefix']."w3t_language"}/languagepal.php";
replace with
include "$thispath/pals/languages/${$config['cookieprefix']."w3t_language"}/languagepal.php";
That will take care of the errors
Kudos to scroungr for the cosmetic changes on pal boxes and taking the time to test it out on 5.3
The only changed line between versions or the instructions is the line above which needs to be changed in 5.4
