[Exim] All messages from "world" rejected

Messages are rejected with the rejectlog entry:

"2003-06-01 23:58:56 H=fallback01.mail.atl.earthlink.net [207.69.200.240]
F=<cnmoore@???> temporarily rejected RCPT
$<chamoo@???>: failed to open /etc/aliases for linear search: Permission denied
(euid=501 egid=500)"

chamoo is a user on the system

I wanted to test that chamoo could receive locally generated mail, but now, things that worked before no longer work. chamoo sent a message to cnmoore@??? which was duly received and a reply generated. (that on May 20)

Repeated attempts to reply from mindspring are rejected with the same reason given.

Now, chamoo is unable to send mail out (same message).

exim-4.10