yay, I get an easy one to answer

Unlike DOS, Linux/Unix does not automatically search in its current directory when given a command to execute. Linux requires that the program in question be in the explicit path or be directly referenced, so ...
/sbin/e-smith/config setprop mysqld LocalNetworkingOnly no
will work (tested it on my SME6 box!) Or ..
cd /sbin/e-smith
./config setprop mysqld LocalNetworkingOnly no
The ./ tells Linux to look in the current directory for the program; the config program is in /sbin/e-smith.
HTH