I have no problem with your test file.

Maybe your babel.sty or other pieces of your tetex installation are
old?

Here is the result of my run, with a very nice opening report.

[kayvan@satyr ~]$ latex test
This is TeX, Version 3.14159 (Web2C 7.3.1)
(test.tex
LaTeX2e <1999/12/01> patch level 1
Babel <v3.6Z> and hyphenation patterns for american, french, german, ngerman, i
talian, portuges, russian, spanish, nohyphenation, loaded.
(/usr/share/texmf/tex/latex/base/article.cls
Document Class: article 1999/09/10 v1.4a Standard LaTeX document class
(/usr/share/texmf/tex/latex/base/size10.clo))
(/usr/share/texmf/tex/latex/psnfss/times.sty)
(/usr/share/texmf/tex/latex/misc/a4wide.sty
(/usr/share/texmf/tex/latex/ntgclass/a4.sty))
(/usr/share/texmf/tex/latex/chess/chess.sty
(/usr/share/texmf/tex/generic/babel/english.ldf
(/usr/share/texmf/tex/generic/babel/babel.def)))
(/usr/share/texmf/tex/latex/base/fontenc.sty
(/usr/share/texmf/tex/latex/base/t1enc.def))
No file test.aux.
(/usr/share/texmf/tex/latex/psnfss/t1ptm.fd) [1] [2] (test.aux) )
(\end occurred inside a group at level 1)
Output written on test.dvi (2 pages, 7548 bytes).
Transcript written on test.log.

-- 
Kayvan A. Sylvan          | Proud husband of       | Father to my kids:
Sylvan Associates, Inc.   | Laura Isabella Sylvan  | Katherine Yelena (8/8/89)
http://sylvan.com/~kayvan | "crown of her husband" | Robin Gregory (2/28/92)

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