Hi wark286,
Indeed, looks like your opensm is not listening to the config file (the test you've done using saquery reflects this fact).
If you're running opensm from a host, try to run it manually:
> /usr/sbin/opensm -P /etc/opensm/partitions.conf
where
> cat /etc/opensm/partitions.conf:
key0=0x7fff,ipoib,mtu=5 : ALL=full ;