Maybe one thing,
If you enter "server -listen"
and you get the error, but is the "server -listen" command still running or does it kill the
"server - listen" command?
I used this site,
read from "The second method of setting up a UNIX server is to do it remotely:"
for the rest i'm out of ideas,
but if it is a debian based linux maybe this link will help,
it's a script for setting correct variables and init script voor debian based distro's
or maybe install X environment and after setup remove it
(and maybe use root (sudo) to execute server setup)