Mine has been working fine. here is how my ini file looks.
[NEWDAY]
DATED_DIR=s:\0day\2003\|/0day/2003|s:\site\Today-0day
DATE_FORMAT=%m%d
;ioNewDay calculates time based on localtime, ioFTPD scheduler is based on UTC time.
TIMEOFFSET=+6
VFS_CHMOD=777
VFS_CHOWN=0:0
DAYS_OLD=2
CLOSED_VFS_CHMOD=777
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