pentium5, have you actually read my quote about /etc/sysconfig/ipchains ? You don't need an extra script, neither mess with /etc/sysconfig/ipchains manually. Just re-init your system to a state where the rules defined in /etc/sysconfig/ipchains are still valid (therefore without your script) and type these three commands:
ipchains -A input -i eth0 -p tcp -s -d 0:65535 -j DENY
ipchains -A output -d -j REJECT
service ipchains save
(I'm not sure about the third line, since I'm not using RedHat.)

What's wrong with your script:
1) It's not neccessary.
2) It flushes the existing rules.

What else is (imho) wrong: plz put screen captures in code tags, too. Makes them easier to read.