Hi Andrew,
Yes, superficially that dataset does look bad.
SolexaQA should automatically detect the file format. You don't mention how you ran the software (i.e., the command line), but try using the default automatic file format detection option.
Alternately, if you have generated this data set recently, it is almost certainly in 'Sanger' format. (The 'Illumina' format is an old variant once used by Illumina, but this can sometimes lead people astray).
If the issue is not one of the above, then we would need to think further...