hidd needs to be executable, owned by root (I prefer it to be suid, but that's just me) Read through the thread in Accessories, it's pretty much all there.
Also, if you don't know that "file not found" means "the file isn't there" you probably aren't ready to be messing with standalone daemons. This is _very_ raw hack, expect problems that you need to be able to debug.
E.G. If you'd looked up what each command did, you'd know that only the hidd line is needed, if a command has the filename xxx.bin then running xxx is not going to execute it, etc etc