[myersklavin]

Correcting my own answer to my own question:

I realized that I was editing the .ini wrong- using OS X app text editor will mess up something in the line. You have to use something like JEdit (available as shareware) or perhaps edit it in classic using BBEdit (haven't tried teach text) Control - Space is the correct combo.
I have been able to play with all the various cheats, except that control-T doesn't seem to cure the party like it's supposed to.
I killed the shadow dragon with control Y and felt horrible pangs of guilt, so I unsaved and went back...