I don't know what else to tell you bro...
1)Open the text file in notepad.
2)Find [Program Options] line.
3)In new line immediately below it, type Debug Mode=1.
4)Re-save file as .txt to same location.
5)Reboot PC and BG2
If you did all of that and it still doesn't work, then I guess you're hosed for some reason.
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Now where did I leave that doughnut?!