Should anyone else face this problem and ends up in this topic via the search function:
I had the very same problem as the OP in the beginning. Did all that was suggested above yet I couldn't seem to get it to work.
Turned out the problem was neither Deluge nor WSE not being up-to-date, but rather having started the module from the WSE shortcut I had on my desktop that I had copy-pasted from my c-RPG WSE folder. Firing up Deluge from 'The Deluge' module's WSE folder seemed to do the trick in the end!
(This will evoke a "Well yeah, duuuh"-reaction from most of you reading this, but there's bound to be more computer noobs like me out there.)