The system is not recognizing the correct group on the accounts file (and possibly, but hopefully not, on other files). (586) indicates a group id that the system doesn't recognize.
A temporary fix is to do the following command (using root):
chgrp root accounts
Confirm that it changes the file permissions to read 'root' 'root'.
It would also be a good idea afterwards to run:
rpm -V e-smith-base
This will run a verification command on all the e-smith base RPMs for your system. What it does is checks the rpm database original values to those of the current system for discrepancies in permissions, owner, group, file sizes, etc.
This SHOULD verify 'all clean' - any files indicated in the report have changed from the initial install.
I tried this on that test system, and the only one that popped up was /etc/e-smith/web/functions/useraccounts
Presumably because the file size changed due to the modification of > 16 characters as there appears to be no real discrepancies in the permissions on it.