Failure to recognise new database

I did a CVS checkout today, and the following database creation fails.

In psql:-

You are now connected to database template1 as user postgres.
template1=# select version();                               version
------------------------------------------------------------------------
PostgreSQL 7.1devel on i686-pc-linux-gnu, compiled by GCC egcs-2.91.66
(1 row)

template1=# create database test;
CREATE DATABASE
template1=# \c test
FATAL 1:  Database "test" does not exist in the system catalog.
Previous connection kept

>> Now restart the postmaster

template1=# \c test
You are now connected to database test.

Is it just me?

Regards,
Grant

--
> Poorly planned software requires a genius to write it
> and a hero to use it.

Grant Finnemore BSc(Eng)  (mailto:gaf@ucs.co.za)
Software Engineer         Universal Computer Services
Tel  (+27)(11)712-1366    PO Box 31266 Braamfontein 2017, South Africa
Cell (+27)(82)604-5536    20th Floor, 209 Smit St., Braamfontein
Fax  (+27)(11)339-3421    Johannesburg, South Africa