Please help with startup script

I have a simple script that supposed to start the samba daemons on an
old HR 7.0 system. It is pretty much copied right out of the "Using
Samba" book except that paths were adjusted to fit the system. It was
stuck on the end of /etc/rc.d/rc.local as follows:

#!/bin/sh
#
# This script will be executed *after* all the other init scripts.
# You can put your own initialization stuff in here if you don't
# want to do the full Sys V style init stuff.

if [ -f /etc/redhat-release ]; then
     R=$(cat /etc/redhat-release)

     arch=$(uname -m)
     a="a"
     case "_$arch" in
        _a*) a="an";;
        _i*) a="an";;
     esac

     NUMPROC=`egrep -c "^cpu[0-9]+" /proc/stat`
     if [ "$NUMPROC" -gt "1" ]; then
         SMP="$NUMPROC-processor "
         if [ "$NUMPROC" = "8" -o "$NUMPROC" = "11" ]; then
             a="an"
    else
        a="a"
         fi
     fi

     # This will overwrite /etc/issue at every boot.  So, make any 
changes you
     # want to make to /etc/issue here or you will lose them when you 
reboot.
     echo "" > /etc/issue
     echo "$R" >> /etc/issue
     echo "Kernel $(uname -r) on $a $SMP$(uname -m)" >> /etc/issue

     cp -f /etc/issue /etc/issue.net
     echo >> /etc/issue
fi

if [ -x /usr/sbin/smbd]; then
     touch /home/chrisg/test1
     echo "Starting smbd..."
     /usr/sbin/smbd -D
     echo "Starting nmbd..."
     /usr/sbin/nmbd -D
fi

touch /home/chrisg/test2

I added the part after the first if. I'm no great scriptor but I think
the if is just testing for
the existence or the executability of /usr/sbin/smbd. In either case,
the test should pass but it fails. After restarting I have test2 but
not test1 in my home directory.

I would really appreciate any help.