Yea, it could be a old version of the game. Do you have add-ons or patches installed? The cheats don't work in the non-patched version.
Also, I believe that to enable the cheats in BG, you enter Cheats=1 under the header 'Game Options' in the .ini-file, but for IWD, you have to put it under 'Program Options'. Or the other way around. So you could try to put it under the other header.
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