OK. The problem is windows is set up to hide scary things like file extensions from the poor helpless user. Im not kidding, this is how M$ think.
Simplest way around it is to go to your BG folder, then start->run->command to bring up a DOS prompt, then type "edit baldur.ini" to edit the file. On XP you cant do that, you have to navigate to the BG folder in DOS mode, CD and dir commands will show you where to go.
A more permanent fix is to go into the view menu, properties, and somewhere in there (I dont have a win98 system to hand any more) is an option "hide extensions for known file types". Uncheck that and windows will show files properly. On an XP system, go into control panel, folder options, veiw, and look for the same option.
One thing, what cap remover are you using that you need to edit the baldur.ini? You dont normaly need the console to activate it, you just put the files into the override folder.
One last thing, when you export to BG2 you will be stripped down to the TotSC experience cap of 161'000XP.
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