Hi Jimmie
Just remove alarm.lua and install alarm.so somewhere that require 
finds it.
Thanks Luiz.
I copied it to /usr/local/lib/lua/5.1.
Which is where I found the expat lxp.so  library which is working great.
Require finds it but I get this error.
jimmie@squirrel:~/lua$ lua
Lua 5.1.1  Copyright (C) 1994-2006 Lua.org, PUC-Rio
require 'lalarm'
error loading module 'lalarm' from file 
'/usr/local/lib/lua/5.1/lalarm.so':
       /usr/local/lib/lua/5.1/lalarm.so: undefined symbol: luaopen_lalarm
stack traceback:
       [C]: ?
       [C]: in function 'require'
       stdin:1: in main chunk
       [C]: ?
Am I doing something wrong?
    Did you renamed the file?  It seems it was called `alarm.so',
so it must have a function called `luaopen_alarm'.  `require' guess the
name of the function by the name of the file so you must not rename it.
    Hope this helps,
        Tomas