I guess I am a little confused what you mean by installer. I just dragged the .app file from the installer DMG to the /Applications folder. Is there a different step. I was under the impression that the intent of the .app distribution of Octave for OSX was intended to have all dependencies (other than OS provided dependencies) wholly included in the .app bundle. /usr/local/octave/3.8.0/bin/gsed must have been installed either manually or as part of the build process. Thus, when someone installs the .app bundle from the DMG file, they would not even have the /usr/local/octave directory on their machine.
Reading the instructions there again, I clearly missed a step and maybe just dragging the .app file from the DMG file to the /Applications folder was not the only step I needed to do. I am downloading the package again to check what step I missed and will post again.