Folks, just an update on my insecure dependency in PerlIO.pm issue. Here is the root cause. I've opened a ticket with rt.cpan.org. Thanks again for your help!! The root of the problem lies with XML::SAX::PurePerl. Installing XML::SAX::Expat caused the problem to go away. Again, this issue only appears when uid != euid. Code that fails:

#!/bin/perl

use XML::Filter::BufferText;
use XML::SAX::PurePerl;

use Carp;
$SIG{__DIE__} = \&Carp::confess;

my $filter = XML::Filter::BufferText->new();
my $parser = XML::SAX::PurePerl->new(Handler => $filter);

$parser->parse_file(\*STDIN);

Back trace from Carp::confess:

Insecure dependency in eval while running setuid at /opt/perl58/lib/5.
+8.0/PerlIO.pm line 22.
        PerlIO::import('PerlIO','encoding') called at /opt/perl58/lib/
+site_perl/5.8.0/XML/SAX/PurePerl/Reader/UnicodeExt.pm line 16
        XML::SAX::PurePerl::Reader::BEGIN() called at /opt/perl58/lib/
+5.8.0/PerlIO.pm line 0
        eval {...} called at /opt/perl58/lib/5.8.0/PerlIO.pm line 0
        XML::SAX::PurePerl::Reader::switch_encoding_stream('GLOB(0x11b
+1bc)','utf-8') called at /opt/perl58/lib/site_perl/5.8.0/XML/SAX/Pure
+Perl/Reader/Stream.pm line 71
        XML::SAX::PurePerl::Reader::Stream::set_encoding('XML::SAX::Pu
+rePerl::Reader::Stream=ARRAY(0x36d58c)','utf-8') called at /opt/perl5
+8/lib/site_perl/5.8.0/XML/SAX/PurePerl/XMLDecl.pm line 120
        XML::SAX::PurePerl::EncodingDecl('XML::SAX::PurePerl=HASH(0x13
+7210)','XML::SAX::PurePerl::Reader::Stream=ARRAY(0x36d58c)') called a
+t /opt/perl58/lib/site_perl/5.8.0/XML/SAX/PurePerl/XMLDecl.pm line 23
        XML::SAX::PurePerl::XMLDecl('XML::SAX::PurePerl=HASH(0x137210)
+','XML::SAX::PurePerl::Reader::Stream=ARRAY(0x36d58c)') called at /op
+t/perl58/lib/site_perl/5.8.0/XML/SAX/PurePerl.pm line 142
        XML::SAX::PurePerl::prolog('XML::SAX::PurePerl=HASH(0x137210)'
+,'XML::SAX::PurePerl::Reader::Stream=ARRAY(0x36d58c)') called at /opt
+/perl58/lib/site_perl/5.8.0/XML/SAX/PurePerl.pm line 129
        XML::SAX::PurePerl::document('XML::SAX::PurePerl=HASH(0x137210
+)','XML::SAX::PurePerl::Reader::Stream=ARRAY(0x36d58c)') called at /o
+pt/perl58/lib/site_perl/5.8.0/XML/SAX/PurePerl.pm line 102
        XML::SAX::PurePerl::_parse('XML::SAX::PurePerl=HASH(0x137210)'
+,'XML::SAX::PurePerl::Reader::Stream=ARRAY(0x36d58c)') called at /opt
+/perl58/lib/site_perl/5.8.0/XML/SAX/PurePerl.pm line 57
        XML::SAX::PurePerl::_parse_bytestream('XML::SAX::PurePerl=HASH
+(0x137210)','GLOB(0x11b1bc)') called at /opt/perl58/lib/site_perl/5.8
+.0/XML/SAX/Base.pm line 2299
        XML::SAX::Base::parse('XML::SAX::PurePerl=HASH(0x137210)','HAS
+H(0x137330)') called at /opt/perl58/lib/site_perl/5.8.0/XML/SAX/Base.
+pm line 2322
        XML::SAX::Base::parse_file('XML::SAX::PurePerl=HASH(0x137210)'
+,'GLOB(0x11b1bc)') called at /tmp/zdrs/z.pl line 13
BEGIN failed--compilation aborted.
        XML::SAX::PurePerl::Reader::switch_encoding_stream('GLOB(0x11b
+1bc)','utf-8') called at /opt/perl58/lib/site_perl/5.8.0/XML/SAX/Pure
+Perl/Reader/Stream.pm line 71
        XML::SAX::PurePerl::Reader::Stream::set_encoding('XML::SAX::Pu
+rePerl::Reader::Stream=ARRAY(0x36d58c)','utf-8') called at /opt/perl5
+8/lib/site_perl/5.8.0/XML/SAX/PurePerl/XMLDecl.pm line 120
        XML::SAX::PurePerl::EncodingDecl('XML::SAX::PurePerl=HASH(0x13
+7210)','XML::SAX::PurePerl::Reader::Stream=ARRAY(0x36d58c)') called a
+t /opt/perl58/lib/site_perl/5.8.0/XML/SAX/PurePerl/XMLDecl.pm line 23
        XML::SAX::PurePerl::XMLDecl('XML::SAX::PurePerl=HASH(0x137210)
+','XML::SAX::PurePerl::Reader::Stream=ARRAY(0x36d58c)') called at /op
+t/perl58/lib/site_perl/5.8.0/XML/SAX/PurePerl.pm line 142
        XML::SAX::PurePerl::prolog('XML::SAX::PurePerl=HASH(0x137210)'
+,'XML::SAX::PurePerl::Reader::Stream=ARRAY(0x36d58c)') called at /opt
+/perl58/lib/site_perl/5.8.0/XML/SAX/PurePerl.pm line 129
        XML::SAX::PurePerl::document('XML::SAX::PurePerl=HASH(0x137210
+)','XML::SAX::PurePerl::Reader::Stream=ARRAY(0x36d58c)') called at /o
+pt/perl58/lib/site_perl/5.8.0/XML/SAX/PurePerl.pm line 102
        XML::SAX::PurePerl::_parse('XML::SAX::PurePerl=HASH(0x137210)'
+,'XML::SAX::PurePerl::Reader::Stream=ARRAY(0x36d58c)') called at /opt
+/perl58/lib/site_perl/5.8.0/XML/SAX/PurePerl.pm line 57
        XML::SAX::PurePerl::_parse_bytestream('XML::SAX::PurePerl=HASH
+(0x137210)','GLOB(0x11b1bc)') called at /opt/perl58/lib/site_perl/5.8
+.0/XML/SAX/Base.pm line 2299
        XML::SAX::Base::parse('XML::SAX::PurePerl=HASH(0x137210)','HAS
+H(0x137330)') called at /opt/perl58/lib/site_perl/5.8.0/XML/SAX/Base.
+pm line 2322
        XML::SAX::Base::parse_file('XML::SAX::PurePerl=HASH(0x137210)'
+,'GLOB(0x11b1bc)') called at /tmp/zdrs/z.pl line 13
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