Doesn't look good. skip a line and try again.
Or delete all the other commands listed there, as you don't need them, and i'm pretty sure they're #'d. (testnet=1 can't be right..)
edit: you're editing a doc file.
Bitcoin.conf is located, or rather, should be created:
Operating System Default bitcoin datadir Typical path to configuration file
Windows %APPDATA%\Bitcoin\ C:\Users\username\AppData\Roaming\Bitcoin\bitcoin.conf
Linux $HOME/.bitcoin/ /home/username/.bitcoin/bitcoin.conf
Mac OSX $HOME/Library/Application Support/Bitcoin/ /Users/username/Library/Application Support/Bitcoin/bitcoin.conf