To fix, download the Bug ini files attachment from this post - http://forums.civfanatics.com/showpost.php?p=11143809&postcount=673 (is there a way to move or link to the attachment directly?)
These MUST go inside the "My Documents\My Games\Beyond the Sword\FFH - More Naval AI\Settings" folder.
These MUST go inside the "My Documents\My Games\Beyond the Sword\FFH - More Naval AI\Settings" folder.