Inoticed that you installed both Gird and database homes under the same directory /u01/app/oracle/product/11.2.0/. At least for RAC installations this is not allowed and grid home must be outside ORACLE_BASE, and grid root.sh script also changes some parent directory privileges. Maybe this could be the case here also.
Good catch, but that isn't the problem. I reinstalled both products in different locations. Same result. But, it does work if I install both under the Oracle user. I'm sure this is a configuration issue, but I'm just not sure what.