Alright so a genius of a dude named Hangender showed me this way to fix the ridiculously sparse loot spawns in 1.7.7.1, simply go into your init.sqf and locate a line that says
and delete it. Bam, done. Loot should start spawning more reliably. I would also use the custom loot table found here : http://opendayz.net/threads/100-custom-loot-tables-tutorial.8474/page-15#post-53896 to edit loot chances, amounts, etc. Have fun!
Code:
#include "\z\addons\dayz_code\system\REsec.sqf"