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The permission should be set properly not only for public_html, but also for all of its parent directories, the user that the web server running as should be able to access that directory.
Your changes has been saved to the configuration file, but "public_html" is not accessible, error log shows that already.
For the failed listener problem, please do "killall lshttpd" from command line to make sure all lshttpd process had stoped.
check if any application using port "7080", do "netstat -an | grep 7080".
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