can't get xinetd to manage danted

I'm running xinetd 2.3.4 and danted 1.1.12-pre1, under Debian. I'd like to
have xinetd manage connections to danted, but I can't find the right
configuration-- danted always exits with one error or another. I know this
is an xinetd problem, because danted runs just fine when I run it
stand-alone, without xinetd.

In xinetd.conf, the relevant section is

# SOCKS
service socks
{
socket_type = stream
wait = no
user = sockd
server = /usr/sbin/danted
server_args = -d
interface = 127.0.0.1
only_from = 127.0.0.1
}

xinetd starts without error. But when I try to connect via a socksified
ftp, I get "Connection reset by peer" and /var/log/daemon.log shows

Jul 18 05:58:01 arsenic danted[6977]: serverinit(): bind(127.0.0.1.1080):
Address already in use (errno = 98)
Jul 18 05:58:01 arsenic danted[6977]: sockdexit(): terminating

On the other hand if I change wait to "yes", I get the dreaded

Jul 18 06:08:37 arsenic xinetd[6970]: Deactivating service socks due to
excessive incoming connections. Restarting in 10 seconds.

Many people have reported this 2nd error in the newsgroups, but no one seems
to know the solution. I've tried setting instances=1, or 10, or UNLIMITED,
but it doesn't matter.

Any help would be much appreciated. My danted.conf is below.
Andrew.

# Server settings

internal: 127.0.0.1 port = 1080
external: eth0

user.privileged: sockd
user.notprivileged: sockd
#user.libwrap: libwrap

connecttimeout: 0
iotimeout: 0

logoutput: syslog/daemon

# Client rules: who can connect
clientmethod: none
client pass {
from: 127.0.0.1/32 to: 0.0.0.0/0
log: connect
}

# Socks rules: what they can do once they connect
method: none
pass {
from: 127.0.0.1/32 to: 0.0.0.0/0
}

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