setuid and generate-application

I've used generate-application to build a deliverable. I'd like to make 
it run with the setuid bit set. (Using ACL 6.2 on Fedora Core 2.)

# whoami
luser
# ls -alF
drwxrwxr-x   2 luser luser     4096 Jan 11 19:41 ./
drwx------  14 luser luser     4096 Jan 11 19:43 ../
-rw-r--r--   1 luser luser 12277022 Oct 22 02:14 files.bu
-rwxr-xr-x   1 luser luser   545830 Apr 19  2004 libacli623.so*
-rw-rw-r--   1 luser luser    89264 Jan 11 19:41 make.stdout
-rwsr-sr--   1 luser luser    34040 Jan 11 19:40 myapp*
-rw-rw-r--   1 luser luser 18710528 Jan 11 19:41 myapp.dxl
-rw-rw-r--   1 luser luser     1166 Jan 11 19:40 myapp.lic
# ./myapp
[Runs great]
# su luser2
Password:
# ./myapp
couldn't open process map file
Unable to locate enough free space to restore C heap
Could not restore the image file:
     /home/luser/myapp/myapp.dxl.

I can make do with
# su luser2 -c ./myapp

but then luser2 can't have a shell of /sbin/nologin. Is there any reason 
setuid doesn't work?

Thanks!