it's kind of hard to comment on that script without the whole thing and it's profile brothers and sisters
i can't really argue with the script even though i think that stuff should be in profile and not bashrc but whatever
the behaviour you describe is very weird
i think first try this in your ~/.bashrc
alias ls='ls --color=auto'
if that doesn't work try putting the same command in ~/.bash_profile as well
if that doesn't work try adding this to ~/.bash_profile in adidion to the other things
(check out the file first /etc/dircolors and make sure that's what it is called)
the global script is using a variable i think "DIR_COLORS" ?
if [ -f "/etc/dircolors" ] ; then
eval $(dircolors -b /etc/dircolors)