This setup works with version 3.0.27 and below if you are running 3.1 you do not have to do these steps… although… I put tor on it’s own virual wireless rather than an enabled vpn for teh lan using a modified version of this setup and then disable tor service. run my own modified config file from here and modify /usr/bin/tor_switch and use the 3.1 interface for feedback and enabling and adding country out.

and to answer you question, if on 3.027 or below, the added lines to /etc/init.d/tor is so it detects your lan ip and updates /etc/tor/torrc with what would be assumed as 10.x.x.x settings automatically