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which has the following comment preceding it:

/**
 * Run a program on a local tcp socket, so that we can talk to it's
 * stdin and stdout.  This is used to fake a connection to a daemon
 * for testing -- not for the normal case of running SSH.
 *
 * @return a socket which is attached to a subprocess running
 * "prog". stdin and stdout are attached. stderr is left attached to
 * the original stderr
 **/
int sock_exec(const char *prog)


It gets called essentially as: sock_exec(getenv("RSYNC_CONNECT_PROG"))

When running the daemon standalone, I see the appropriate behavior.  And 
with various versions of your command, I'm unable to get any reasonable 
output.  (Something with permissions on '.', even though I chmod'ed 777 
on the temp dir.)  And, I see that bind() occurring before I see the 
execve() of the RSYNC_CONNECT_PROG (strace -fe trace=bind,process).  So, 
that bind() is unrelated to the daemon itself (I think).

Best,
Ben