The error has to do with wrapping PHP so it runs under your own userid, rather than user nobody or user apache. I set this up on a site just a few minutes ago and I am having the same issue. I can of course take that out, but it means that when I update plugins and such they update as user nobody which basically insures that I have to do all of the updates manually.
I would contact your hosting company and see if they can fix it. I suspect that they will not be able to. In that case you might have to find a hosting company that allows you to run PHP scripts such as those in wordpress without a wrapper. It also means that you will have to chmod your files so they can not be overwritten and get rid of all of the default templates and such to increase security.