7.1 feature?

I need to do something like this:

SELECT n.name FROM
(SELECT p.contact_seq AS contact_seq, p.lastname||', '||p.firstname AS name
FROM person p
UNION
SELECT co.name AS name FROM company co) n;

Of course there's more; this is cut from the original select.
But PostgreSQL complains about SELECT (i guess it's the SELECT in the
subquery)
In the dox I read:

A FROM item can also be a parenthesized sub-SELECT (note that an alias clause
is required for a sub-SELECT!). This is an extremely handy feature since it's
the only way to get multiple levels of grouping, aggregation, or sorting in a
single query.

Is this a 7.1 feature? Or is my typing wrong?
And will 7.1 support unions in subselects like above?

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