That seems to have done the trick, I added "EffectShaderName=xxxxx.fx" to all the [xxxxMaterial] sections for all the .ini files under the effects folder you sent me. Now I see the fires, smoke and tracers in all their glory :)
The bad news is that just last night, as things were looking up, the z axis of my flight stick decided to stop working... its a logitech extreme 3D pro (they are cheap, and have had it for at least 7 years...). The rudder is now not centered, planes lean left, and does not go fully to the right. Anyway, makes it challenging. I was just gonna buy the same one on amazon, since they are 35 bucks only. But, I thought since you guys have been so helpful, maybe you would have a good recommendation. Any suggestion gents? Thanks!