EUREKA!!!! Thanks Timbo, it runs now. I had it installed in my home directory, where I mirrored my Q3 installation (easy upgrade and patching).
So I moved the Tremulous directory to /usr/local/games/quake3 and kept my changes to the tremulous script, i.e using quake3-smp and not quake3.
Thanks my man, frag action here I cum!!!

PS: I have mirrored the tremulous directory to my home folder and it still works, so no issues with any automatic patching....hehehehe!!! Kill kill kill!!