I found my module installation problem: it has nothing to do with CPAN.pm (thank god).
It comes down to how different people do things. I do a lot of Perl and install a lot of modules on my Powerbook, so I chown-ed the Perl modules directories to my normal, non-priveleged user. I can install modules for all users and do so without any special priveleges. (In past lives I have also used a "perl" group to do that when several people should have that ability).
Not everyone does it that way. Maybe nobody else does, even. If I don't own the directories as my regular user, I invoke super-user privs:
sudo cpan Local::Foo
albook_brian[1457]$ ls -l total 0 ---------- 1 brian brian 0 5 Sep 14:54 not_readable -r-------- 1 brian brian 0 5 Sep 14:54 readable albook_brian[1458]$ perl -le 'print "Readble!" if -r shift' not_readable albook_brian[1459]$ sudo perl -le 'print "Readble!" if -r shift' not_readable Readble!