Redhat odbc configuration help

I'm new to Postgres and am having some trouble getting the odbc
connectivity working. When I perform a odbctest I get the following
error.

odbctest "dsn=hsodbc"

OpenLink ODBC Demonstration program

This program shows an interactive SQL processor

[iODBC][Driver Manager]Driver's SQLSetConnectOption failed,
SQLSTATE=IM006

Unknown connect option (Set), SQLSTATE=S1009

Have a nice day.

My .odbc.ini file is as follows

.odbc.ini

[ODBC Data Sources]

hsodbc = PostgreSQL ODBC Driver DSN

[hsodbc]

;Driver = /usr/lib/psqlodbc.so

Driver = /usr/lib/libodbcpsql.so

Setup = /usr/lib/libodbcpsqlS.so

Description = PostgreSQL ODBC Driver DSN

DSN=hsodbc

Server = localhost

Port = 8477

;Protocol = 6.4

Protocol = 8.0

Username=billy

Password=letmein

Database=home

ReadOnly=no

ServerType=postgres

FetchBufferSize = 99

ServerOptions =

ConnectOptions =

Trace = Yes

TraceFile = /tmp/PostgreSQL_test_trace.log

Debug = 1

DebugFile = /tmp/PostgreSQL_test_debug.log

[Default]

Driver=/usr/lib/libodbcpsql.so

;Driver=/usr/lib/psqlodbc.so

[ODBC]

InstallDir = /usr/lib