Multiple errors while solving a pair of coupled 1-D PDEs

I'm failing to solve the following system of equations using MATLAB 7.7.0(R2008b). I've mentioned both code and errors below. Could anyone please suggest what I'm doing wrong?

(gamma)*f*du1/dt - d2u1/dx2 + (gamma)*du1/dx = a*(u1-u2);

(1-f)*du2/dt = a*(u1 - u2)

u1 depends on x,t and u2 depends on u1,t; f=0.7; gamma=60; a=0.065.

Initial conditions

u1(t=0)=0; u2(t=0)=0

Boundary conditions:

at x=0, -u1(input)=-u1+du1/dx;

at x=1; du1/dx=0

u1(input)=1

function [c,b,s] = eqn2(x,t,u,DuDx)
%EQN2: MATLAB M-file that contains the coecents for
%a system of two PDE in time and one space dimension.
c = [42; 0.3];
b = [1; 0] .*DuDx;
s = [60*(0.065*(u(1)-u(2))-DuDx); 0.065*(u(1)-u(2))];

function [pl,ql,pr,qr] = bc2(xl,ul,xr,ur,t)
%BC2: MATLAB function M-file that defines boundary conditions
%for a system of two PDE in time and one space dimension.
pl = [60*(1-ul(1)); 0];
ql = [1; 0];
pr = [0; 0];
qr = [1; 0];

function value = initial2(x)
%INITIAL2: MATLAB function M-file that defines initial conditions
%for a system of two PDE in time and one space variable.
value = [0; 0];

%PDE2: MATLAB script M-file that solves the PDE
%stored in eqn2.m, bc2.m, and initial2.m
m = 0;
x = linspace(0,1,10);
t = linspace(0,1,10);
sol = pdepe(m,@eqn2,@initial2,@bc2,x,t);
u1 = sol(:,:,1);
u2 = sol(:,:,2);
subplot(2,1,1)
surf(x,t,u1);
title('u1(x,t)');
xlabel('Distance x');
ylabel('Time t');
subplot(2,1,2)
surf(x,t,u2);
title('u2(x,t)');
xlabel('Distance x');
ylabel('Time t');

Errors:

??? Error using ==> daeic12 at 77 This DAE appears to be of index greater than 1.

Error in ==> ode15s at 395 [y,yp,f0,dfdy,nFE,nPD,Jfac] = daeic12(odeFcn,odeArgs,t,ICtype,Mt,y,yp0,f0,...

Error in ==> pdepe at 320 [t,y] = ode15s(@pdeodes,t,y0,opts);

Error in ==> Untitled4 at 6 sol = pdepe(m,@eqn2,@initial2,@bc2,x,t);