Also, my .ini file didn't even have a line for compass setting, I had to add in manually. Which is strange since every single person I've seen talk about it HAS the line.
Sounds like you may be changing the incorrect ini file.
Go to Documents/My Games/Skyrim/SkyrimPrefs.ini and change it there. After you change it, Start Skyrim using the TESV.exe in the main game file folder to see if the change held.