Regarding the modifications to file permissions mentioned, I copied
the files into my working directory and changed the permissions as
follows:

source file: 400
image file: 600
change file: 600
VM: 700

and everything seems to be working fine on that score now (thanks),
although if anyone sees any problems with these settings, feel free
to mention it.  We're still thinking about how to install it on the
department system and, knowing a little bit more about what these
files are for, a new question comes up.  As it stands now every student
who wants to play with squeak will need to have his own copy of all 4
files (or at least 3, since it seems you can do without the source
file if necessary).  This means an extra 8 to 14 megs of disk space
per student.  Is there any convenient way around this?  Something that
would make the system work more like a conventional setup (if only
where disk usage is concerned) where a student keeps source code and
executables of his assignments in his account and invokes a compiler
which exists as a single copy in a world accessable directory somewhere?
 
Regarding the mouse freezes, no change.  Even with the -memory 32m
switch in force just opening the "play with me" window with the text
concerning the history of squeak and clicking on one of the arrows on the
top (which I assume loads new pages of text in) freezes squeak and drives
the cpu back up to 100% until the squeak process is killed manually.  I
can only guess that there's some compatibility problem with the hardware
on my system.  Perhaps squeak would be happier if I had 64 meg of ram
installed?

Thanks,
Kevin