...file /home/server04/public_html/temp/administrator/components/com_digistore/admin.digistore.php has been encoded with the ionCube PHP Encoder and requires the free ioncube_loader_lin_5.2.so ionCube PHP Loader to be installed.
Is this a server problem or its me?
It is the same old, same old. You have to have a unique instance of ionCube installed for each iJoomla product. Most of the reports, and my own experience, suggests that even having it on the server as a service will not suffice.