Yes, your config is in the right folder now.
But as you see in the red requirements text, you need to have the 1.1.0-r2400 nightly build or the 1.0.4-svn nightly build.
This plugin was not tested on other versions of sourcemod.
[EDIT]
Gave out the wrong foldername first. Instead of <dodModFolder>orangebox/dod/logs it should be:
Please open the folder <dodModFolder>/logs and download the latest .log file.
<dodModFolder> refers to something like orangebox/dod for normal.
Sorry for my mistake.
If there is a error folder within that folder go into this folder and download the latest error log file.
Open this files with the editor and search for the term "GivePlayerItem" without quotes. If you find some lines that mean something like "GivePlayerItem not supported by this mod" you have the wrong sourcemod version.
Download a sourcemod version from the nightly builds. WARNING!!! While you upload the new sourcemod files your server will restart over and over again until the upload is finished.