Unable to drop tables in MySQL

This is as annoying as heck. And unrepeatable to boot. Anyone have a suggestion about how I messed up my installation?

8:08 AM: seems to be related to the suid script that I use to run mysqld_safe. If I run the script as the mysql user or I explicitly run /usr/local/mysql/bin/mysqld_safe as myself, then everything is fine. But when I run the suid script as myself, then the problem appears.

local/mysql 52 $ pwd
/usr/local/mysql
local/mysql 53 $ uname -v
Darwin Kernel Version 6.8: Wed Sep 10 15:20:55 PDT 2003;
root:xnu/xnu-344.49.obj~2/
RELEASE_PPC
local/mysql 54 $ ./bin/mysqld --version
./bin/mysqld  Ver 4.0.20-standard for apple-darwin6.8 on powerpc (Official MySQL-standard binary)
local/mysql 55 $ ps -auxww | grep mysqld
mysql    463   0.0  0.1     1828    588 std  S     4:04PM   0:00.07 sh ./bin/mysqld_safe
mysql    487   0.0  1.8    26304  11964 std  S     4:04PM   0:03.99 /usr/local/mysql/bin/mysqld
local/mysql 56 $ cat `which mysqld_safe`
#!/bin/sh
cd /usr/local/mysql/
nohup ./bin/mysqld_safe "$@" > /tmp/mysql$$.out 2>&1 &
local/mysql 57 $ mysqladmin -u root -p create foo
Enter password:
local/mysql 58 $ ls -ld data/foo
drwx------  2 mysql  mysql  68 Jun 15 16:23 data/foo/
local/mysql 59 $ mysql -u root -p
Enter password:
Welcome to the MySQL monitor.  Commands end with ; or g.
Your MySQL connection id is 9 to server version: 4.0.20-standard

Type 'help;' or 'h' for help. Type 'c' to clear the buffer.

mysql> use foo;
Database changed
mysql> create table bar ( id integer not null primary key, name varchar(32) );
Query OK, 0 rows affected (0.01 sec)

mysql> drop table bar;
ERROR 1051: Unknown table 'bar'
mysql> drop table foo.bar;
ERROR 1051: Unknown table 'bar'
mysql> exit
Bye
local/mysql 60 $ sudo chmod 770 data/foo
Password:
local/mysql 61 $ ls -ld data/foo
drwxrwx---  5 mysql  mysql  170 Jun 15 16:24 data/foo/
local/mysql 62 $ mysql -u root -p
Enter password:
Welcome to the MySQL monitor.  Commands end with ; or g.
Your MySQL connection id is 10 to server version: 4.0.20-standard

Type 'help;' or 'h' for help. Type 'c' to clear the buffer.

mysql> drop table foo.bar;
Query OK, 0 rows affected (0.01 sec)

mysql> exit
Bye