The owner of su (and busybox] is already root-root. Everything else in the directory is root-shell. I also checked Superuser.apk and it is root-root as well. SU, Busybox, and Superuser have RW-RW permitions instead of RW-RO (read/write, readonly].
I'm going to delete everything, drink a Monster, then try it again from scratch.
UPDATE:
Still not working.
I put the phone in download mode, deleted the files and rebooted the phone. I reran the adb script to push files, booted to linux, opened terminal, typed "sudo -s" then "sudo nautilus" and then moved the files to the right spots using cut and paste. Exited nautilus. Then using terminal I went to '/media/57[blah]_/bin', chmod'ed su and busybox manualy to the permitions used in the script. Typed 'chown root su'. Then I went to '/media/57[blah]_/app' and chmod'ed Superuser.apk. I rebooted the phone and I still do not have root.
Does the fact that everyone is seeing "system" while I see some long name with a mix of letters and numbers make a difference... I see like 4 or 5 different ones but only one has 'app' and 'bin' so I am assuming that is 'system'.
*getting the noose ready*