I think you may have broken your shell. I have a good tutorial on rsync which I've used before. http://www.fredshack.com/docs/rsync.html
. Check it out. Alternatively you can just use rsync over ssh and you dont actually need to run the rsync daemon, if it is giving you issues.
If you can log in some how, type chsh and set it back to /bin/bash, if this is indeed the case.