tutorial security hint not working?

[eluser]gene292[/eluser]
PHP Version 5.2.17

here are the excerpts from home/me/work/www.xshare.com/htdocs/index.php
$application_folder = '/home/me/work/www.xshare.com/htdocs/codi/application';
$system_path = '/home/me/work/www.xshare.com/htdocs/codi/system';
here is output of ls -la *
-rwxr-xr-x 1 me me 6439 2012-06-18 21:30 index.php
-rwxr-xr-x 1 me me 6415 2012-06-17 16:16 index.php~
-rwxr-xr-x 1 me me 2496 2012-06-16 21:19 license.txt

codi:
total 16
drwxr-xr-x 4 me me 4096 2012-06-18 21:30 .
drwxr-xr-x 3 me me 4096 2012-06-18 21:30 ..
drwxr-xr-x 15 me me 4096 2012-06-16 21:19 application
drwxr-xr-x 8 me me 4096 2012-06-16 21:19 system