Are you playing with multiple installs of SH3? I ask because with GWX2 installed I no longer have any 'default' SH3. Anyway, SH3 Commander shouldn't go in any folder; when you run the installer it creates its own folder in Program Files, with an icon to the desktop.
And yes, 16k is realistic. The horizon is about 8km away, but taller objects are easily visible at much greater distances. Also, it's nice on a clear day to have the lookout tell you he's seen a ship, and when you look all you see is a thin column of smoke in the distance.
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