One question that has nothing to do with your current problem... you have put that in your ars.cfg file:
ARS_ORIGINAL_CODEPAGE=819
who told you to use that value of 819? the ARSDB command? Because, I have a lot of customer who have a database with codepage 819, and the arsdb -uv command was ALWAYS giving 923 and not 819, because the value code page 819 is deprecated and has been replaced by 923.
That's why CMOD will always give you that kind of value even when you have your database set to 819.
That's why I am really curious to know how you got this value of 819...
Back to your problem... I see nothing wrong with your settings.
Concerning the TSM Client / TSM API, did you installed the fixpack 7.1.2 or later? Since you said that you have the TSM client 7.1, which I suppose is 7.1.0.0.
I am asking, because all the installation/upgrade I've done, I've installed with my customer always the client 7.1.2 or later. Except for one of them, where we needed to keep the version 6.4.3 and I never experienced such problem as you describe. Therefore I am wondering if in your case you have that problem.