Eek, you are correct, there is a config error in the v3.3.1. To fix, go to your DCS install folder (e.g. "C:\Program Files\Scorched Earth Online War System (x32)") and open SEOW-DCS-V3.3.1.exe.config in a text editor. In the first line change
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<?xml version="1.0" encoding="windows-1252"?>
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<?xml version="1.0" encoding="utf-8"?>
DCS re-issued as SEDCS-v3.3.1_enc.zip.
Cheers,
4Shades