Hey man,
I have 7B also installed and have not noticed the problem you describe yet, however, I haven't had a load of peeps in the server when I have had it up and running.
One thing is for sure though, you should have no 7A entries in your System Folder or UT2004 ini. So you might wanna just clear all SafeGame related entries out, and reload the u/ucl files in the System folder, be sure to add the Server Actor or Package, whichever you use, or both, then I usually manually add the SafeGame ini, but it will, of course generate on its own, upon boot up.
If I notice the problem you describe, I will let you know asap.
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