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It does look as though your notes.ini setting is getting updated (the fact that it begins with an 8 instead of a 6) but it also looks as though possibly setup is not detecting the change so as to do the necessary database upgrade. I have forwarded this thread to the Install/Sstup developer.
Feedback response number DBRO7R6RWP created by ~Lex Chujipychekettu on 04/16/2009