I'm having the exact same problem.

Here's my permissions:

init-2.03# ls ini* -l
-rwxrwxr-x 1 0 0 184 Nov 27 22:49 init
-rwxr-xr-x 1 0 0 8900 Sep 28 16:53 init.before_displayserve
r
-rwxrwxr-x 1 0 0 173 Nov 27 22:15 init.sco (this is my backup)