transactions not working properly ?

Hi,
can any one describe how the transaction are being
handled in postgres.
i.e.
function given below should actually insert the desire
values in test table but it do not save them.
START TRANSACTION;
create or replace function testFunc() returns int as
$$
declare 
x integer;
begin    
x := 1;    
insert into test values (210,20);
x := x/0;

RETURN 0;

exception
when others then   raise info 'error generated ';   commit;   RETURN 0;
end;
$$ language plpgsql;

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