Just fixed it with the following:
chmod o+x /home/frappe
chmod o+r /home/frappe
Thanks so much!
Oh Cool 
Was just about to put a link to an excelent vagrant box made by Luis Fernandes.
It does run on Ubuntu but it is a great way to run a local test server instance.
Here is the link in case.
Actually there is a frappe VM somewhere as well thats probably more recent.
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