After reinstalling psmon I typed 'which -a psmon' which only lists the following path.
/usr/bin/psmon
After running psmon as root I was able to get it to search for the conf file in /etc. Apparently when it's run as a normal user it looks in $HOME/etc/psmon.conf. So my only problem left is the 2 background daemons. I suppose this could be normal behavior. When you run "sudo psmon --daemon" does it give you the same message? Thanks for your help.
Just did a search for all psmon files on my system and this is what I found.
I don't run psmon, so I can't say what is the expected behavior. I don't see from your file list, anything showing 2 background daemons. That would show up in "ps aux | grep psmon". But if you get 2 it may be normal, it may fork as a daemon.