Problem was that I was chmodding the directory instead of the binary also I was missing arguments and the directory of installation. (had to mount system as root as well).
Well I was able to get it to install but the problem is the write protection, when I reboot my phone all the files that were in the /system/xbin directory were gone. Unfortunately that program no longer exists, all links point to a "Page Not Found" page. I would rather not download it from an unofficial source so I'm sol unless I can install it through recovery but I have no idea how to go about doing that and I don't see any instructions.
Thanks for the help guys.