Okay, this is getting weird.
First up: exporting to dotxsi 3.5 doesn’t require the use of the soft_material.
Secondly: you did try static meshes as well as animated ones I assume.
And thirdly: this is a general troubleshooting trick, I really don’t know if it will help, but it cannot hurt either: Go to your Softimage installation folder to the Application\bin folder (in my case “C:\Softimage\Softimage_Mod_Tool_7.5\Application\bin”) and locate a file named runonce.bat”. Run this file as an Administrator to reregister all the associated dlls and spdl once again. This is the closest thing you can get, apart from actually uninstalling and reinstalling the software. This might not help one bit, sorry, but it is something you should try on the small chance your installation got messed up somehow. And just to show, I’m not making this up:
Running runonce.bat to reregister DLLs and SPDLs, which provides another the way to start the command.