Freshly created user cannot connect

Hi,

maybe I am a bit stupid, though it is quite a long time since I had to
administer. However, the problem is such:

I'd like to put the GnuMed (http://www.gnumed.org) repository onto a separate
database. Therefore I created a script gnumed_install.sql that should do the
tirck. Below the beginning of the script creating database owner/dba and
connecting to it as freshly created user and creating the database. I make it
run as postgres (superuser) on template1.

**
-- Thiemo Kellner, 2003-08-09, thiemo@thiam.ch
-- This code may be used or altered freely. I do not take any liability.

-- put the lines below (without line comment --) into pg_hba.conf
--host    GNUMED      GNUMED_DBA         0.0.0.0         0.0.0.0   md5
--host    template1   GNUMED_DBA         0.0.0.0         0.0.0.0   md5

-- force terminate + exit(3) on errors if non-interactive
\unset ON_ERROR_STOP

-- Create a user the data base belongs to
drop user GNUMED_DBA;
create user GNUMED_DBA
   encrypted password 'xyz'
   createuser
   createdb
;

\set ON_ERROR_STOP 1

-- Create the data base that is to contain the GnuMed repository
-- as the GnuMed repository owner (gnumed_dba)
\connect template1 GNUMED_DBA

create database GNUMED;

-- Revoke the right to create data bases from the the GnuMed repository owner
-- (gnumed_dba). One data base is enough ;)
\connect template1 postgres

alter user GNUMED_DBA
   nocreatedb
;
-- remove the line below from pg_hba.conf
--host    template1   GNUMED_DBA         0.0.0.0         0.0.0.0   md5
\echo Please change pg_hba.conf such that gnumed_dba only may connect to
\echo its own repository

-- Populate the GnuMed repository with its objects
***

The script create the new user but connecting with it fails:
template1=# \i gnumed_install.sql
DROP USER
CREATE USER
Passwort:
psql:gnumed_install.sql:24: \connect: FATAL:  Password authentication failed
for user "GNUMED_DBA"

I neither can connect with this user by
# psql -d template1 -h nyffeltrach -U GNUMED_DBA
giving me the same error:
Passwort:
psql: FATAL:  Password authentication failed for user "GNUMED_DBA"

Does anybody have an idea what I am doing wrong? All my other users have been
created with the same statement options.

Cheers,

Thiemo

--
root ist die Wurzel allen Übels