I've tried everything it seems like. My server is running BattlEye latest server dll from Battleye.com, and my PC is running the latest client.
I am using the latest beta patch on both server and client, but it shows up as BattlEye required: No in server list, and it kicks me for 'battleye initialization failed' after a few minutes after entering with 'wait for host' screen.
I also have BattlEye=1 in server cfg.
Client: Windows 7 x64 Ultimate
Server: Windows server x64 2008 datacenter
I am posting here because I cannot narrow it down to a client or server problem.
Help would be appreciated.