The alternate method left out a step about the creation of some links.
Here is the modified alternate method:

Install the client on a system that has a display. This is necessary to
extract the files. Copy the Tivoli Storage Manager folder to the Xserver.

The following steps need to be completed on the Xserver, from inside the
Tivoli Storage Manager folder to finish the setup and configuration:

Set the permissions on the dsmtca application:

sudo chown 0:80 dsmtca
sudo chmod 4755 dsmtca

Create the links in /usr/bin

sudo ln -sf ./dsmtca /usr/bin/dsmtca
sudo ln -sf ./dsmc /usr/bin/dsmc
sudo ln -sf ./dsmcad /usr/bin/dsmcad

Create the default preferences location and set the permissions correctly
with these commands:

sudo mkdir "/Library/Preferences/Tivoli Storage Manager"
sudo chown 0:80 "/Library/Preferences/Tivoli/Storage Manager"
sudo chmod 755 "/Library/Preferences/Tivoli/Storage Manager"

Copy the sample option files to the default location and set the
permissions correctly with these commands:

cp "TSM System Preferences - Sample" "/Library/Preferences/Tivoli Storage
Manager/TSM System Preferences"
chmod 755  "/Library/Preferences/Tivoli Storage Manager/TSM System
Preferences"
cp "TSM User Preferences - Sample" "/Library/Preferences/Tivoli Storage
Manager/TSM User Preferences"
chmod 755 "/Library/Preferences/Tivoli Storage Manager/TSM User
Preferences"

Edit the option files with these commands:

vi "/Library/Preferences/Tivoli/Storage Manager/TSM System Preferences"
vi "/Library/Preferences/Tivoli/Storage Manager/TSM User Preferences"

At this point, the command line client should be able to connect to the
TSM server.

Additional steps are required to install the client scheduler. Refer to
"Configuring the client scheduler - Method 2" on page 18 of the book for
how to install the client scheduler as a startup item from the command
line.

Andy Raibeck
IBM Software Group
Tivoli Storage Manager Client Development
Internal Notes e-mail: Andrew Raibeck/Tucson/IBM@IBMUS
Internet e-mail: storman AT us.ibm DOT com

The only dumb question is the one that goes unasked.
The command line is your friend.
"Good enough" is the enemy of excellence.