Error: Exec-Program: Permission Denied when running via service start

[Christopher Athans]

Greetings all, I've been racking my brains out trying to solve/debug
the following issue, hopefully someone can provide a new perspective.

I've implemented mOTP as en external authentication program by
defining it in radiusd.conf with a Program = "/etc/raddb/otpverify.sh"
statement.
As I said, it does indeed work properly, except, when I start the
radiusd server up as a daemon via init.d

radiusd -X   - Works properly
service radiusd start or /etc/init.d/radiusd start FAILS
sh /etc/init.d/radiusd start Works

When it works properly, I get proper Accept Replys.  When it 'fails',
its due to not being able to execute the script and this is logged in
radius.log
Error: Exec-Program: FAILED to execute /etc/raddb/otpverify.sh:
Permission denied

In all the above scenarios, I was root when executing the statements.
I am *not* in a chroot jail, all the necessary directories are
read/write by user 'radiusd' which is what the process is running as.
I'm also using the init.d script that came with the CentOS package.

My linux platform and freeradius information is as follows:

CentOS 5.5 -  2.6.18-194.32.1.el5 #1 SMP  x86_64 GNU/Linux
running  FreeRADIUS Version 2.1.7, for host x86_64-redhat-linux-gnu.


Thanks for any assistance with this.