Have you tried stracing the executable? It might be missing some other support file, but then giving an incorrect error message. For example, if you try to use the 'chroot' command without all the approprate libraries in the new root location, it will spit out a "/bin/sh: No such file or directory" error, even though /bin/sh exists in the new location. Using strace reveals that the "No such file or directory" error is actually from when /bin/sh tries to load a library that isn't there.
/Just had to deal with that particular problem last night
//Just man strace.
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