Character *.rel's for Riivolution Users

[tempesttime]

Hello everybody.
I was wondering if someone could help me with character *.rel files. I have taken a look at other posts before I added another help post to the site, but I ended up having to as I have not found anything that seems to match my problem.
I have divided this post into two sections: the story, and the diagnosis. Hopefully this will make it less complicated for those who may not want to look at the story and see the diagnosis, or vise versa.

The story:

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The diagnosis:

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As I would like this to perhaps be a reference for people who have the same problem, please don't fix the modlauncher.xml for me, just tell me how I should fix it or what I should type in (and if there are another problems you see that you have a solution too NOT relating to this, please PM me with the answer). 
Thank you all very much.
Here is the link to MY modlauncher.xml:

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