From what i can see, the first line doesn't work because you missing the identifier in front of 'read'.
if (*hug* iswm $strip($1-)) { describe $chan $read(bawthug.txt) }
It'll work if the code is as above.
The 'cookie' code works, though i'd assume the problem is due to you having two on TEXT codes in one script.
on *:TEXT:*:#:{
if (*hug* iswm $strip($1-)) { describe $chan $read(bawthug.txt) }
elseif (*cookie* iswm $strip($1-)) { msg $chan $read(bawtcookie.txt) }
else { halt
}
}
Im not sure about your *.ini error, would have to see more of the code. And i'd suggest adding a trigger to the commands, or you'll have the bot preform 'hug' and 'cookie' each time that word is mentioned in the channel.