Problem with 6.5 reload

I have just started to experiment with the new 6.5 beta.

When trying to reload the databases I got an error on what is a pretty
simple SQL command.

The pg_dump was from 6.3.1

I did psql < db.out

The error is

CREATE FUNCTION next_target ( )
   RETURNS int4 AS
   'update global set next_target=next_target+1;select next_target from global'
   LANGUAGE 'SQL';
ERROR:  parser: parse error at or near ""

I have tried repeating manually and get the same command.
The help would indicate the syntax is still correct.

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