This is how it should look, it is a direct copy from my .ini file. For some reason, the game will not open in window mode, and you have to press alt+enter. Moving the NWN folder to the desktop starts it automatically in window mode.
[Display Options]
Width=800
Height=600
BitsPerPixels=32
RefreshRate=60
TexturePack=1
SafeMovie=0
FullScreen=0
AllowWindowedMode=1
UseLargeFont=0