by Ken Task.
Could be wrong, but version of Moodle (1.9.4) is quite old and may have been victum to a hack. The file referenced in lib/moodlelib.php doesn't have 'eval()'d code on line 2 on an updated/more secure 1.9.19+. To check open the moodlelib.php file with a text editor and check out line 2.
In a 1.9.19 version line 2 is blank and just above a 'Notice of Copyright' comments.
Would highly recommend updating 1.9.4 to the highest/most secure version in that series 1.9.19.
'spirit of sharing', Ken