luatools --generate
   This is luaTeX, Version 3.141592-beta-0.10.2-2007090506 (Web2C 7.5.6)
   **
   <I have to Control-D out here>
    

  That is not normal. luatools --generate should not start LuaTeX at all;
I now understand what happened: yesterday you reported you changed the
beginning of luatools to contain:

	#!/bin/sh
	luatex --luaonly=luatools.lua "$@"

  That is not correct. If you want luatex to behave as a lua interpreter
you have to call it with "luatex --luaonly" and no equal sign after it;
simply delete that sign and replace it with a space. Or, alternatively,
alter the first two lines of the script to contain "#!/usr/bin/env texlua"
like originally; what is wrong with it?

	Arthur