[Exim] Problem with aliases

I am having a problem with my system aliases. This is just a standard
"fresh" installation running exim 3.12. My system aliases from exim.conf is
below:
system_aliases:
driver = aliasfile
file = /etc/aliases
search_type = lsearch
user = mail
file_transport = address_file
pipe_transport = address_pipe

Here is the error I'm getting:
2000-01-08 22:15:40 1278pQ-0002fn-00 system_aliases director: /etc/aliases (lsearch lookup): file mode 0664 should not contain 0020 (check the modemask option)

Any help would be appreciated. Please cc dmz@??? as well as list.

Thanks,
David

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    David M. Zendzian * dmz@??? * page-dmz@??? 
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