No, it is not a permissions problem startx executes fine...it sounds like
the message is coming from x itself: "X: user has no authority to run X
server". 

On Sat, Sep 16, 2000 at 08:54:01PM -0500, Scott wrote:
>     Sounds like a permission error on the x server.  Make sure that
> it's world executable, or make yourself a member of whatever group
> it's in.
> 

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