git-daemon: needs /root/.config/git/config?

Hi again, 

Due to the earlier problem I upgraded git on all machines 
and eneded up with a ubunut machine running in to problems.

I started getting errors like:
"fatal: protocol error: bad line length character: fata"

Which after some head scratching caused me to tell xinetd to directly
launch git-daemon, eventually it worked fine, but i did get this error
message:

Jun  4 16:12:05 xyz git-daemon[10246]: unable to access
'/root/.config/git/config': Permission denied

It's not the first time i've seen it but i've been able to ignore it
before. This is running as a local user (as in not root) and this user
shouldn't have access to /root. But i eventually had to do chown o+x
/root to workaround this error.

Now, this must be wrong somehow? Or does --user work in inetd mode now?

So... comments, ideas?