Read permissions are give to everyone where it is necessary for a user
to do "pwd" but "pwd" fails with permission denied.

I think this also happened in 6.x releases, too.

Fix: 

Unknown.
How-To-Repeat: % df
Filesystem          1K-blocks      Used    Avail Capacity  Mounted on
/dev/ad4s4a           2026030   1859118     4830   100%    /
devfs                       1         1        0   100%    /dev
/dev/ad4s4d           5077038   3678668   992208    79%    /usr
/dev/ad4s4e.journal  10154156   8550560   791264    92%    /ports
/ports/db/pkg        10154156   8550560   791264    92%    /var/db/pkg
/ports/X11R6         10154156   8550560   791264    92%    /usr/X11R6
/ports/local         10154156   8550560   791264    92%    /usr/local
% cd /usr/local
% pwd
/usr/local
% ls -sld .
2 drwxr-xr-x  35 root  wheel  1024  3 10 12:52 .
% ls -lsd share
 6 drwxr-xr-x  292 root  wheel  6144  3 19 13:12 share
% cd share
% pwd
pwd: .: Permission denied
% cd /ports/local/share/
% pwd
/ports/local/share
% su -l root
$ cd /usr/local/share
$ pwd
/usr/local/share
$ cat /etc/fstab
# Device                Mountpoint      FStype  Options         Dump    Pass#
/dev/ad4s4b             none            swap    sw              0       0
/dev/ad4s4a             /               ufs     rw              1       1
/dev/ad4s4d             /usr            ufs     rw,noatime      2       2
/dev/ad4s4e.journal     /ports          ufs     rw,noatime      2       2
/ports/db/pkg           /var/db/pkg     nullfs  rw,noatime      0       0
/ports/X11R6            /usr/X11R6      nullfs  rw,noatime      0       0
/ports/local            /usr/local      nullfs  rw,noatime      0       0
/ports/compat           /usr/compat     nullfs  rw,noatime      0       0