You need to use CG miner 3.7.2 or lower, 3.8.5 definitely doesn't support scrypt. I personally use 3.1.1
cgminer-3.8.5-windows>cgminer --scrypt -o stratum+tcp://107.170.25.102:3333 -u xxxx -p xxx
[2014-02-07 12:05:55] cgminer: --scrypt: unrecognized option
help?
cgminer --scrypt -o stratum+tcp://stratum.cryptopool.eu:3336 -u Weblogin.Worker -p Worker password
cgminer-3.8.5-windows>cgminer --scrypt -o stratum+tcp://stratum.cryptopool.eu:3336 -u xxx -p xxx
[2014-02-07 12:21:14] cgminer: --scrypt: unrecognized option
same shit different pool!

do i need another version of cgminer?