I'm having the same problem, the terminal command to make that testfile worked, guess its a good sign but i wouldn't know, I also have a couple of extra problems:
It started with VisualHub saying "Critical componats of Mac OS X are missing or damaged on your system, Without them, VisualHub is unable to continue. The affected componats is/are: - /tmp Temporary Directory. Try Repairing Permissions using Disk Utility"
So i did that using OnyX, rebooted, still didn't work, so i remember hearing about how reinstalling .3 of 10.5.3 can help replace files that are lost, so i did that and thats where it went wrong, it rebooted and it seemed to go good, but then i noticed a big ? where Camino is meant to be on my Dock and i looked in my stack and it was gone, Safari would crash on the 5th letter i typed anywhere on the browser, (Safari and Webkit Nightly) At least Firefox works so i can post this, Spotlight is gone from the menu bar, i can't drag anything from the dock and i can't drag safari from the App stack or the dock crashes.
The thing that worries me is why was Camino deleted? and Safari crashing?
If anyone has a solution to this you would be a HUGE help, i really don't want to reformat my mac because i don't have anywhere to backup my files, i don't have the money for a decent sized HDD to backup into.
Thanks all who help!!!