Recovery using Online Backup+WAL and broken passwords

PostgreSQL 8.0.1
Linux FC2, 2.6.8

Hi,

I'm very new to PostgreSQL.  I've been the admin of several MySQL
servers for years, but for various reasons we're switching to PostgreSQL.

I love the online backup feature, but I'm encountering a problem with
users restored from WAL files.  It seems that after a restore, the
password for any user created since the base backup is broken.

This is what I've done:

created a base backup (using online backup)
created some users
stopped postgresql
restored postgresql from base backup (and added recovery.conf)
started postgresql

The logs indicate that everything went great.  The archived and
unarchived WAL files are restored/used and the database backup is
brought up-to-date.

The users exist in the system, but their passwords are broken.  If I
used "ALTER USER" to reset the password then I can access the database ok.

I'm using md5 as the default encryption. I've tried crypt and that
doesn't work either. It doesn't seem to matter whether I use ENCRYPTED
or UNENCRYPTED when created the users.

So....is there something in the way users are created from WAL files
that doesn't properly restore passwords?  Has anyone else ecountered
this problem?

Thanks!

Michael