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It's not working for you, because your config and profile in cod4 directory is no longer usefull. Cod4x18 write/read profiles in new location "%localappdata%/CallofDuty4MW" (here you find your actual config to modify). Also dunno why don't you just change dynent_active in game. Simply open the console(~) and type dynent_active 1.
2. Not all objects will move, only these models with "dyn_model" classname, so only small models on the ground.