So what I did to get it to work is as fallows:
<Game FirstStart="false" Subtitles="true" SimpleWeaponSwing="false" DisablePersonalNotes="false" AllowQuickSave="false" FlashItems="true" ShowCrossHair="false" AskTutorial="false" SimpleSwingInOptions="false" Difficulty="1" CurrentUser="default" LanguageFile="english.lang" ShowPreMenu="true" ShowMenu="true" ShowIntro="true" />
<Controls MouseSensitivity="1.000000" InvertMouseY="false" ToggleCrouch="true" />
<Keys Forward_Type="Keyboard" Forward_Val="66" Backward_Type="Keyboard" Backward_Val="62" Left_Type="Keyboard" Left_Val="44" Right_Type="Keyboard" Right_Val="47" LeanLeft_Type="Keyboard" LeanLeft_Val="60" LeanRight_Type="Keyboard" LeanRight_Val="48" Run_Type="Keyboard" Run_Val="116" Jump_Type="Keyboard" Jump_Val="6" Crouch_Type="Keyboard" Crouch_Val="118" InteractMode_Type="Keyboard" InteractMode_Val="61" LookMode_Type="MouseButton" LookMode_Val="1" Holster_Type="Keyboard" Holster_Val="67" Rotate_Type="Keyboard" Rotate_Val="46" Examine_Type="MouseButton" Examine_Val="2" Interact_Type="MouseButton" Interact_Val="0" Inventory_Type="Keyboard" Inventory_Val="1" NoteBook_Type="Keyboard" NoteBook_Val="57" PersonalNotes_Type="Keyboard" PersonalNotes_Val="59" WheelUp_Type="MouseButton" WheelUp_Val="3" WheelDown_Type="MouseButton" WheelDown_Val="4" Flashlight_Type="Keyboard" Flashlight_Val="49" GlowStick_Type="Keyboard" GlowStick_Val="50" Escape_Type="Keyboard" Escape_Val="5" RightClick_Type="MouseButton" RightClick_Val="2" LeftClick_Type="MouseButton" LeftClick_Val="0" One_Type="Keyboard" One_Val="22" Two_Type="Keyboard" Two_Val="23" Three_Type="Keyboard" Three_Val="24" Four_Type="Keyboard" Four_Val="25" Five_Type="Keyboard" Five_Val="26" Six_Type="Keyboard" Six_Val="27" Seven_Type="Keyboard" Seven_Val="28" Eight_Type="Keyboard" Eight_Val="29" Nine_Type="Keyboard" Nine_Val="30" ResetGame_Type="Keyboard" ResetGame_Val="97" SaveGame_Type="Keyboard" SaveGame_Val="100" LoadGame_Type="Keyboard" LoadGame_Val="101" Screenshot_Type="Keyboard" Screenshot_Val="108" PrintLog_Type="Keyboard" PrintLog_Val="55" />
<Graphics NoiseFilter="true" Bloom="true" MotionBlur="true" MotionBlurAmount="0.300000" DepthOfField="true" Refractions="true" TextureSizeLevel="0" TextureFilter="0" TextureAnisotropy="16.000000" Gamma="1.000000" FSAA="4" PostEffects="true" ShaderQuality="3" LimitFPS="true" Shadows="0" />
<Debug ShowHealth="false" ShowSoundsPlaying="false" LogResources="false" />
<Sound Volume="1.000000" UseSoundHardware="true" UseEnvironmentalAudio="true" MaxSoundChannels="32" StreamUpdateFreq="10" UseThreading="true" MaxMonoChannelsHint="0" MaxStereoChannelsHint="0" LowLevelSoundLogging="false" />
<Screen Width="1920" Height="1080" FullScreen="true" Vsync="true" />
<Demo WebPageOnExit="http://www.penumbrablackplague.com/" />
<Map GlobalScript="global_script.hps" File="
level01_cells.dae" StartPos="link01" />
<Physics PhysicsAccuracy="2" UpdatesPerSec="60.000000" />
You need to change what is Bold and underlined. Because I fixed it at 1am last night I can not remember the name of the file that was origonaly there but it had something to do with boat in the name.....which if you look in the black plague folder there is no level with boat in the name
so, That fixed mine. That should fix yours.
Oh ya, mine is a steam copy as well, uninstalling it and downloading the game again from steam does not help. It does not help because steam is the one that puts the file there and if the steam servers do not get updated then even if you re download it from them, you are just re downloading the same file with the same broken .cfg file =-/
The file to change is Documents\Penumbra\Black Plague\settings.cfg just FYI