.dso are what Dynamix calles 'compiled scripts'. Basically, when you run the game, T2 looks at all the scripts, compiles 'em so they run faster, and sticks 'em in .dso files.
The problem with that is that T2 doesn't check and recompile the .dso's, so if you patch or add something without deleting the .dso, T2 thinks that the content of the .dso (your old, pre-patch copy of T2) is the correct one, even though you have newer scripts.
Deleting the .dso forces the game to re-read all of the scripts and recompile 'em from scratch.
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