Ok, I think its the spacing next to the hashes maybe.
Try replacing:
/opt/retropie/configs/all/retroarch.cfg
with this contents
http://pastebin.com/raw.php?i=VJhK2qpy
I’ve also attached it, renamed as .txt
Here are the main diffs, mine are in green:
http://s6.postimg.org/4php5s75t/diffs.png