Reece,
Yes, this is all in the zones.cfg file.
GWX has always had some of the code from gouldjg's old hollywood mods, which is why its listed in the zones.cfg file (as poor sailor indicated). However, gouldjg created a mod with additional crew explosions, secondary sinking explosions and bigger fires for GWX (this is the mod melnibonian listed in his post).
There have been no changes in zones.cfg between 1.02 and 1.03, so that upgrade by itself, should not have the effect you cited. I would suggest just applying gouldjg's mod (It consists ONLY of the zones.cfg file) and you should get the effects you want. The mod was actually made for GWX 1.0, but the changes made in zones.cfg between 1.0 and 1.02 were minor (an attempt to cut down on flooding effects of extreme bow/stern hits I believe), so you can still use it with no ill effects.
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