How are you editing the config file? Windows editor and its converting it to DOS line endings?
He stated earlier in the thread what editor he was using. Non-windows, IIRC. I'm not familiar with the editor so I don't know whether it would be a factor or not.
Linux and joe. Joe has a "-crlf" option, so I'd imagine that it can autodetect if a file already has it, and "do the right thing" transparently [and it does].
I'd suggest running dos2unix on the config file before putting it back on the player, and see if that resolves the problem.