Here is my text from my Europe installation. It's the preference section. These are working good. Paste it into yours, see if anything changes.
Code:
[PREFS]
ADF_500_HZ=0
ADVANCED_WEATHER=0
ASLAT=2
ASLON=0
COM_RATE=7
DEMO=0
FULL_SCREEN=1
FULL_640=1
Keyboard_Current=Dave
Keyboard_Default=CFS
SYSCLOCK=0
HAZE_FLAG=0
HEAR_COCKPIT=1
HEAR_ENGINE=1
HEAR_NAVIGATION=1
INDASPD=0
KBDAIL=64
KBDELEV=64
KBDRUD=64
LOADSIM=0
LOADWINDOW=1
LOG_TIME=0
MAP_ORIENTATION=2
LINEAR_CONTROLS=0
UNITS_OF_MEASURE=2
MEASURE=0
MOU_AIL=25
MOU_ELEV=35
MOU_NUL=64
PAUSE_ON_LOST_FOCUS=1
QUICKTIPS=0
RADIOS_25_KHZ=0
SOUND=0
SHOW_OPENING_SCREEN=1
PROMPT_ON_EXIT=0
NORTH_SEASONAL_LAT=32
SOUTH_SEASONAL_LAT=32
FOREIGN_TRANSLATOR=0
PERFORMANCE_MODE=0
DEF_PERF_MODE=6
MAP_GROUND_TEXTURE=1
TEXT_SCROLL=1
PANEL_MASKING=1
PANEL_STRETCHING=1
AUTO_LOD=0
TEXTURE_QUALITY=3
IMAGE_COMPLEXITY=5
DYNAMIC_SCENERY=0
DYN_SCN_DENSITY=0
DAWN_DUSK_SMOOTHING=1
SMOOTH_VIEW=0
IMAGE_SMOOTHING=0
LOD_TARGET_FPS=30
COCKPIT_HIGH_LOD=1
TEXTURE_MAX_LOAD=1024
DETAIL_TEXTURE=1
EFFECTS_QUALITY=2
TERRAIN_ERROR_FACTOR=1.500000
TERRAIN_MAX_VERTEX_LEVEL=19
TERRAIN_TEXTURE_SIZE_EXP=8
TERRAIN_DEFAULT_RADIUS=9.500000
TERRAIN_EXTENDED_RADIUS=4.500000
MAX_UNLIMITED_VIS=56327
AIRCRAFT_SHADOWS=1
GROUND_SHADOWS=1
IMAGE_QUALITY=0
TEXTURE_BLDG=1
TEXTURE_GND=1
SKY_TYPE=1
TEXTURE_WATER=1
AIRCRAFT_TEXTURE=1
SEE_SELF=1
PROPELLER_VISIBLE=1
SOUND_FADER1=0.200000
SOUND_FADER2=0.200000
SOUND_FADER3=0.200000
SOUND_FADER4=0.100000
SOUND_FADER5=0.200000
LOADWEATHER=0
LOW_RES_RENDERING=0
SITUATION=
STARTUP_DEMO=
KNEEBOARD=0,520,304
LOG_FILE=1
[SOUND]
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