rcd problem

Setting up rcd on a system and I'm getting some errors.  RH8.0 with latest
updates installed by red-carpet.

When I start the rcd daemon the /var/log/message file gets these entries:

 Jan 29 12:51:26 <sysname> rcd: rcd startup succeeded
 Jan 29 12:51:26 <sysname> rcd: [10327] Red Carpet Daemon 1.0.1 
 Jan 29 12:51:26 <sysname> rcd: [10327] Copyright (C) 2000-2002 Ximian Inc. 
 Jan 29 12:51:26 <sysname> rcd: [10327] Start time: Wed Jan 29 12:51:26 2003

 Jan 29 12:51:26 <sysname> rcd: [10327] id=1 BEGIN 'Downloading
  http://red-carpet.ximian.com/distributions.xml' (running) 
 Jan 29 12:51:26 <sysname> rcd: [10327] id=1 COMPLETE 'Downloading
  http://red-carpet.ximian.com/distributions.xml' time=0s (finished) 
 Jan 29 12:51:27 <sysname> rcd: [10327] Initializing RPC system 
 Jan 29 12:51:27 <sysname> rcd: [10327] Initializing modules 
 Jan 29 12:51:27 <sysname> rcd: [10327] Could not find module directory
  /usr/lib/rcd/modules -- no modules loaded 
 Jan 29 12:51:27 <sysname> rcd: [10327] Starting server 
 Jan 29 12:51:27 <sysname> rcd: [10327] Starting heartbeat

Not sure if the modules directory is the issue.  But then if I try to
connect to rcd on the same system using rc:

 rc refresh
 rc summary

Shows correctly the updates available.  However, if I connect through using
-h like:

 rc -h <sysname> -U root summary

This produces the following error:

 [root@<sysname> root]# rc -h <sysname> su
 Password:  

 ERROR: Unable to make a secure connection to the daemon: (5, 'EOF occurred
in violation of protocol')

Using localhost in place of <sysname> produces the same result.  Have the
correct password in rcd.passwd file (using echo -n <pw> | md5sum).  But I'm
not sure what is wrong here, can anyone shed any light?
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