Thank you for the detailed and helpful replies. I finally got everything working - and of course, the solution was something ridiculously easy.
I was using the latest Arma2P, but apparently not the latest BI tools, even though I downloaded them from the wiki. Suffices to say there was some conflict with the old BI tools and all the config files from ca folder. All I had to do, is download the latest BI tools. Something so simple to overlook! Anyway, thanks again. Luckily everything works fine now. I imagine most people would have given up by now though.
Hopefully my findings will help somebody else too.
Binarize.exe has stopped working, binpbo crashing...