I figured out why it wouldn't compile.
You don't need IDE 1.0 , You just need 1.0+ (higher than 1.0) so 1.05 is fine.
On the Bildr page there is a button on the left labeled "download".
Click that to download the zip file. (delete any files you had previously installed for this library first)
Install it in the My documents\Arduino\Libraries folder.
Rename the folder to ADXL345 (get rid of the arduino v6 part)
Close all instances of the IDE.
Reopen IDE and click Sketch\add file and select the ADXL345_Example.ino
It should compile with IDE 1.05
