[root@oldcow i386]# rpm -qf /etc/rc.d/init.d/network
initscripts-5.55-1

Missing pipe near end of line 38 breaks the script - I ran it piece by 
piece from command line to find it.  Then $interfaces doesn't get set 
to 'eth0', so eth0 isn't brought up.

interfaces=`ls ifcfg* | egrep -v '(ifcfg-lo|:|rpmsave|rpmorig|rpmnew)' | \
	    egrep -v '(~|\.bak)$' \

should be:

interfaces=`ls ifcfg* | egrep -v '(ifcfg-lo|:|rpmsave|rpmorig|rpmnew)' | \
	    egrep -v '(~|\.bak)$'  | \

Hey, I learned a lot figuring this out.