bash: /usr/bin/sed: Permission denied

[Balint <iex5e3b02 at sneakemail dot com>]

I installed the current stable cygwin on an XP Professional SP3
machine as a local user with admin rights.

It is a completely default install, "next-next-finish" style.

Now when starting the shell, it gives several error messages, the
first of which is this:

bash: /usr/bin/sed: Permission denied

And indeed, when I try to run sed individually, it is aborted with the
same error message. All the other commands seem to work fine, the only
exception is sed. Listing /usr/bin shows the same permissions
(-rwxr-x---+) for all commands, including sed.

I have installed cygwin on several machines in the past and I have not
met this problem yet. The only difference I can think of is that I
control this machine over a Remote Desktop Connection.

I attached the output of cygcheck -s -v -r for reference.

Please advise how to fix this issue.
Thanks, Balint

Btw I tried 1.7 beta and I faced the very same problem.

Attachment: cygcheck.out
Description: Binary data

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