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We present two examples of velocity distributions for light dark matter particles that reconcile the annual modulation signal observed by DAMA with all other negative results from dark matter searches. They are: (1) a conventional Maxwellian distribution for particle masses around 5 to 9 GeV; (2) a dark matter stream coming from the general direction of galactic rotation (not the Sagittarius stream). Our idea is based on attributing the DAMA signal to scattering off Na, instead of I, and can be tested in the immediate future by detectors using light nuclei, such as CDMS-II (using Si) and CRESST-II (using O).
Gondolo et al. (Fri,) studied this question.