Not to start an argument but concretely if you have created the
LSVROOT directory with, say, permissions 700 (drwx------) and
ownership by 'listserv', nobody but 'root' or 'listserv' should
be able to read files in that directory to begin with.  Are you
saying you've opened up the LSVROOT directory to all and sundry?

I'm no unix expert but with my test server set up that way I can't
read anything in or under /home/listserv from a non-priviledged
account.

Nathan