Download the files again. Use this link:
http://projects.mobileread.com/iliad...r/fbreader.zip It is a different binary.
As far as hard coding, most programs are compiled to run from /usr/ or /usr/local/. It doesn't so much matter for the executable file, but the other files that it depends on. FBReader looks for it's graphics in /usr/local/share by default. /usr/local will need to point to /mnt/free/newspapers/fbreader, not a directory within local. There is no /usr/local in the iLiad by default, so this won't cause a problem.