So, let me try to understand this: when you run ./df in the normal directory, it says that it can't find Dwarf_Fortress. You decided to go into libs and try to run Dwarf_Fortress directly, and that's what you're posted a screenshot of.
Your permissions are identical to those on my computer, so that's not the issue. In fact, I'm stumped - it simply doesn't make sense. What happens if you, say, "cat Dwarf_Fortress" (or "file Dwarf_Fortress")? Does it claim that it can't find it?
What happens if you extract the install again? Perhaps into a different folder, even.
Yeah you got the interpretation right. I can read the file with cat/less/whatever (well, it's binary so 'read' doesn't mean much but it shows me the contents of the file). I'll try reinstalling in a bit when I've got more time.
Edit: Ok, I tried redownloading and extracting and there was no change. I extracted with tar -xvf and by double clicking and letting Ubuntu figure out how to extract it and both gave me a df_linux directory that looked exactly the same and didn't work. To be clear, I just have to type ./df to run df when I'm in the folder it's in, right? I'm not just failing Unix?