and if you had read my OP i said i followed all instructions listed in the ST:R thread

I did do those modifications to the mod.ini file. I had the problem with those mods done to it. it wasn't until i wrote those command lines in the launcher that i got the good graphics and effects...
EDIT: I've been playin' FSO for over a year now, ive encountered the fabled mod.ini problem when Blue Planet was first released. Trust me, when my OP said I followed the instructions, I did. I train people in tech support for a living, i know what it is. I often force myself not to include a dxdiag on such routine matters as this one.
EDIT 2:
Known Issues: (green ones are bugs that have been fixed)
3) In str06, "He Who Rides the Tiger", Lambda 1 will not dock with the Ratna if you are using the mediavps and your mod priorities are not configured correctly.
I also had this bug when playing this particular mission earlier today, but as i said,
I followed all the instructions to the letter and thus, my mod priorities SHOULD be configured properly...
what did I miss

I'll try to put in a more recent build of 3.6.10, see if that works...I'm using the one that came with the installer.