Timestamp with Timezone

I recently upgraded an application from postgresql 7.4.2 to 7.4.5, and now I am having timezone nightmares.

I checked on the old server, and found that in the postgresql.conf, the timezone was set for unknown. The timezone
portionof the records was being set to GMT+06 ( for reference, I am in GMT-06 ). Now, on the old server, when i pulled
data,the dates came back correctly.  

However, on the new server, I am getting dates that adjust properly for the timezone in the record, which means that my
recordsshow as having been entered a day before, which is killing my users. Can someone help me understand the timezone
nightmare,and how i can fix my records so that they appear on the correct day? 

I am using the exact same jdbc library to connect to both servers, and my setup is:

OLD Setup
Redhat 9
Postgres 7.4.2 (compiled from source)

NEW Setup
Redhat 3 Enterprise
Postgres 7.4.5 (compiled from source)


Thanks,