Particle troubles placement wrong?

I have some default particle emitters I'm using to simulate water vapor under a waterfall. My waterfall is nothing more than a box with an IFL attached. I placed the partcle emitters at the base of the fall, and just in front of it, but for some reason, in TGEA 1.7.0 they don't render properly. (may be a bug, but just in case it's me messing up again, I put this here) ((this works perfectly in tge 1.5.2))

The following images will show you what I'm talking about:

Players view from the front
Free flight from above
Free flight from the side
Editor view showing the placement of the nodes

I'm using the following sky block:

new Sky(SkyObject) {
      canSaveDynamicFields = "1";
      Enabled = "1";
      position = "336 136 0";
      rotation = "1 0 0 0";
      scale = "1 1 1";
      materialList = "scriptsAndAssets/data/skies/sky_skybox.dml";
      cloudHeightPer[0] = "0";
      cloudHeightPer[1] = "0";
      cloudHeightPer[2] = "0";
      cloudSpeed1 = "0";
      cloudSpeed2 = "0";
      cloudSpeed3 = "0";
      visibleDistance = "800";
      fogDistance = "20";
      fogColor = "0.8 0.8 0.9 1";
      fogStorm1 = "0";
      fogStorm2 = "0";
      fogStorm3 = "0";
      fogVolume1 = "0 0 0";
      fogVolume2 = "0 0 0";
      fogVolume3 = "1 1 1";
      windVelocity = "0 0 0";
      SkySolidColor = "0.6 0.6 0.6 1";
      useSkyTextures = "1";
      renderBottomTexture = "0";
      noRenderBans = "0";
      renderBanOffsetHeight = "50";
      skyGlow = "0";
      skyGlowColor = "0.557279 -0.635902 0.533987 -0.557212";
         fogVolumeColor1 = "128 128 128 -2.22768e+038";
         fogVolumeColor2 = "128 128 128 0";
         fogVolumeColor3 = "128 128 128 -1.70699e+038";
         windEffectPrecipitation = "0";
   };

Note windEffectPrecip is turned off.

Here is the default chimney smoke I'm using:

datablock ParticleData(ChimneySmoke)
{
   textureName          = "~/data/shapes/particles/smoke";
   dragCoefficient     = 0.0;
   gravityCoefficient   = -0.2;   // rises slowly
   inheritedVelFactor   = 0.00;
   lifetimeMS           = 3000;
   lifetimeVarianceMS   = 250;
   useInvAlpha = false;
   spinRandomMin = -30.0;
   spinRandomMax = 30.0;

   colors[0]     = "0.6 0.6 0.6 0.1";
   colors[1]     = "0.6 0.6 0.6 0.1";
   colors[2]     = "0.6 0.6 0.6 0.0";

   sizes[0]      = 0.5;
   sizes[1]      = 0.75;
   sizes[2]      = 1.5;

   times[0]      = 0.0;
   times[1]      = 0.5;
   times[2]      = 1.0;
};

datablock ParticleEmitterData(ChimneySmokeEmitter)
{
   ejectionPeriodMS = 20;
   periodVarianceMS = 5;

   ejectionVelocity = 0.25;
   velocityVariance = 0.10;

   thetaMin         = 0.0;
   thetaMax         = 90.0;  

   particles = ChimneySmoke;
};

datablock ParticleEmitterNodeData(ChimneySmokeEmitterNode)
{
   timeMultiple = 1;
};

and my .mis file info:

new ParticleEmitterNode(fallsSplash1) {
         canSaveDynamicFields = "1";
         Enabled = "1";
         position = "-388.297 -379.112 213.455";
         rotation = "0 0 1 209.13";
         scale = "1 1 1";
         dataBlock = "ChimneySmokeEmitterNode";
         emitter = "ChimneySmokeEmitter";
         velocity = "1";
      };

(1 of several)
I don't understand why this isn't working like it should. Any help in figureing this out would be greatly appreciated.

My system specs are:
[code]
Windows XP home sp2
AMD Athlon 64
1.0 gb ram
nVidia GeForce 6800 xt (latest drivers)