On Page 1, you mention changing CUPS somehow to use a different cupsd.conf. Is that still the case?
BTW, when I made the changes above, the entry in cupsd.conf changed from "Allow @Local" to "Allow all". That would suggest that CUPS is ready to accept remote print jobs.
Are you still trying to do this through ssh?
The error message above suggests that CUPS does not have write permission on the folder /etc/init.d/cups , even though you logged into CUPS as root.