(debian etch in a debootstrapped xen domU, minimally configured, sbcl 1.0.12, slime from cvs, emacs from apt)

# whereis sbcl
sbcl: /usr/local/bin/sbcl /usr/local/bin/sbcl.old /usr/local/lib/sbcl

~# ls slime/
CVS           metering.lisp           swank-clisp.lisp      swank-scl.lisp
ChangeLog     mkdist.sh               swank-cmucl.lisp      swank-source-file-cache.lisp
HACKING       nregex.lisp             swank-corman.lisp     swank-source-path-parser.lisp
NEWS          sbcl-pprint-patch.lisp  swank-ecl.lisp        swank.asd
PROBLEMS      slime-autoloads.el      swank-gray.lisp       swank.lisp
README        slime.el                swank-lispworks.lisp  test-all.sh
contrib       swank-abcl.lisp         swank-loader.lisp     test.sh
doc           swank-allegro.lisp      swank-openmcl.lisp    xref.lisp
hyperspec.el  swank-backend.lisp      swank-sbcl.lisp

# cat ~/.emacs
(add-to-list 'load-path "/root/slime")
(setq inferior-lisp-program "/usr/local/bin/sbcl")
(slime-setup)
(slime)


** startup messages from emacs **
(emacs)
Loading disp-table...done
Loading 00debian-vars...
No /etc/mailname. Reverting to default...
Loading 00debian-vars...done


An error has occurred while loading `/root/.emacs':

Symbol's function definition is void: slime-setup

To ensure normal operation, you should investigate the cause
of the error in your initialization file and remove it.  Start
Emacs with the `--debug-init' option to view a complete error
backtrace

** emacs started with --debug-init **
Debugger entered--Lisp error: (void-function slime-setup)
  (slime-setup)
  eval-buffer(#<buffer  *load*> nil "~/.emacs" nil t)
  load-with-code-conversion("/root/.emacs" "~/.emacs" t t)
  load("~/.emacs" t t)
  #[nil "^H\205\227^@   �=\203^Q^@�^H�Q\2025^@  �=\203'^@����#\203#^@�\2025^@�\2025^@   �=\2031^@�\$
  command-line()
  normal-top-level()