The doc from MS was missing an entry which would prevent the tool from properly creating the *.vec files found in the vector file folder. Bob Park has made the correction and published this for folks interested in theater creation in the future.
Because MS forgot to call out a parameter which is required to make good ai pathing vectors in CFS3, Bob Park (rbp71854) has revised the CFS3 SDK document.
I have just uploaded it here to SOH at his request.