I am a mere acolyte unworthy to stand in the Mage Lord's shadow, but as modesty is ill-becoming even an acolyte mage, I'm going to try to do some tech support anyway. Remember you get what you pay for with this advice
MisterBarca, are you sure you copied the bolded numbers correctly, The green indicates the position of the number in your file that you'll need to paste over the bolded blue numbers for the tweak to work. Also important is the bit about changing the number on the line before, as that tells the code how many script conditions come in the next section and a mismatch would probably cause what you're getting. Failing that, are you sure you preserved the line spacing and spaces after periods?
Lecundra and Brent, that's over my tech support pay grade. I seem to recall rumors that the 1.011 patch fixed the bug elsewhere in code, so this tweak for 1.010 may re-break 1.011. Dunno. I'll add my voice to the chorus asking for wiser heads to clarify this.
Ringwraith, I have an answer to your question that Microsoft Help would be proud of. I know at least one modder has changed it for their mod, so it is possible.
Seriously, I think I recall seeing something to that effect in the .ini file. Otherwise I just dunno.
Beelzeboss, Tommylaw posted that in this very thread, then I overlooked it and posted a link to his other thread about it. I know it's in here somewhere, last post on page 64 or so I think. If the something else you did was to add the talk to village elder option to the menu, you'll have to set the 11 not to 12 but to 13, since you're adding not one but two new menu options. Beat my head against that one a time or two before figuring it out.
HimuraBattosai, it sounds like you're using Vista. Which by default protects everything in the Program Files directory from mere computer owners modifying it. You can either install M&B to some other folder outside Program Files (which I recommend for all future game installs) or you can look around on this or most any other game forum for help dealing with Vista access control on the program files folder. I know there's a setting in some menu that fixes it (which type of thing I refer to as the hidden checkbox labeled "work"), but as I'm on XP I never bothered to learn it.