$package['description']
$txt['package_description']
so the problem resides within these variables?
to make things perfectly clear you could post the content of one of those variables and also post the pagesource that will be created from that.
From what I've seen the above suggestions go in the right direction. I personally prefer the strtr statement and use an array to define what I want to replace so in the end you would change your code along this line:
$replace_pairs = array('blah'=>'blub', etc...);
echo '
<li>', $txt['file_location'], ': <a href="', $package['href'], '">', $package['href'], '</a></li>
<li class="description">', strtr($txt['package_description'], $replace_pairs), ': ', strtr($txt['package_description'], $replace_pairs), '</li>
</ul>';
hth
Bjom