Dear Jason,

You need to have octave available. I don't know which cluster you are using. On guillimin I have the following line in my .bashrc

module load octave/3.8.1

Also, psom_run_script is not meant to be used directly, but rather caller through psom_run_pipeline. Here is a tutorial on this tool:
http://psom.simexp-lab.org/how_to_use_ps...

And a tutorial on psom's configuration:
http://psom.simexp-lab.org/psom_configur...

On guillimin, I change the following variables on psom_gb_vars.m

gb_psom_command_octave = 'octave';
gb_psom_qsub_options = '-A XXX -q sw -l walltime=03:00:00';
gb_psom_mode = 'qsub';
gb_psom_max_queued = 300;
gb_psom_nb_resub = 5;

pbs_jobid = getenv('PBS_JOBID');
if isempty(pbs_jobid)
    gb_psom_tmp = '/tmp/';
else
    gb_psom_tmp = ['/localscratch/' pbs_jobid filesep];
end

This last block is a bit tricky: on guillimin the temporary folder is defined by a variable environment which does not exist on the login node. Also you have to replace "XXX" by the number of you compute canada account (mine is something like gsf-xxx-xx). 

I hope this helps,

Pierre