Cannot create tabel named 'user'

Roman Solomatin (roman(dot)solomatin(at)tele2(dot)ee) reports a bug with a severity of 3
The lower the number the more severe it is.

Short Description
Cannot create tabel named 'user'

Long Description
Cannot create a table named user no matter if the database is old or freshly created. It may be version specific, because I have PostgreSQL 6.5.3 and system administrator doesn't update it to 7.x version.

Sample Code
In psql:
template1=> create database new_database;
CREATEDB
template1=> \c new_database
connecting to new database: new_database
new_database=> create table user ( id int2 not null );
ERROR: parser: parse error at or near "user"
new_database=> create table users (id int2 not null );
CREATE
new_database=>

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