I think I have found a solution (though I have no ligical explanation for it, i.e. for the lack of symptoms).
On MY system, I have the following php.ini files
/etc/php5/cli/php.ini
/etc/php5/apache2/php.ini
/etc/php5/cgi/php.ini
and
/opt/php52/etc/php5/cli/php.ini
/opt/php52/etc/php5/cgi/php.ini
I believe that safe mode was set to ON in one of the cgi/php.ini (I think /etc/php5/cgi/php.ini - but cannot remember).
I set it to off and re-booted. Now I get no error messages and just get occasional reports (which appear to work correctly).
Why this is so, I have no idea.
I am running the latest version of Ubuntu on a dedicated server with Plesk 8.6 control panel.
I was not aware (nor had any reason to enquire about it) that Dolphin was linked to CGI or maybe it is a setup issue on my system.
i must confess that I too went nuts trying to figure it out as the diagnostics indicated that all was in order.
Hope this helps
Andrew