I had the same error until I added Bans.txt [don't add BE Bans.txt - it doesn't work] to my <DriveLetter>:\<A3Epochservername here>\SC\BattlEye\ folder. Makes sure you set 'show extensions for known file types' in your windows explorer folder options. Once it was in there, I commented out the:
line in the config.cfg in the <DriveLetter>:\<A3Epochservername here>\Config\ folder.
Then that worked a treat.
* Tip, set the timeout to 45 seconds or add --dsc to a .bat file
ie
start bec.exe --dsc
so that bec doesn't timeout waiting for your Arma3.bat file to finish starting everything [ie the file to run the server]. It makes it wait regardless of timeout.
Otherwise it takes too long and Bec doesn't want a bar of it. I've merged my start bec, then start arma3 epoch server bat file. So there is less changing folders and running different things.
@ Ghostrider: Cheers for that info dude. Though i wonder how people are making servers with this bug floating around *confused*. Will keep headbutting it though. Just 'coz I'm persistent... errr hard-headed.