BUG #3049: psql does not honor md5 in pg_hba.conf file

The following bug has been logged online:

Bug reference: 3049
Logged by: Aaron Zedonis
Email address: azedonis(at)ntag(dot)com
PostgreSQL version: 8.1
Operating system: Windows
Description: psql does not honor md5 in pg_hba.conf file
Details:

I have set up a server on a Linux machine, in my case the IP is 10.0.0.104.
I have configured the pga_hba.conf file so that all external requests
require password authentication. e.g.

# TYPE DATABASE USER CIDR-ADDRESS METHOD
local all all trust
host all all 127.0.0.1/32 md5
host ntag ntag 10.0.0.104 255.255.255.0 md5
host ntag report 207.145.64.220 255.255.255.248 md5

When I attempt to login from a different Linux machine, I am correctly
challenged for my password. e.g.

$ /usr/local/pgsql/bin/psql -h 10.0.0.104 -U ntag ntag
Password for user ntag:
Welcome to psql 8.1.4, the PostgreSQL interactive terminal.
...

When I attempt to login from a Windows machine, I am not challenged for my
password:

C:\Documents and Settings\azedonis>psql -h 10.0.0.104 -U ntag ntag
Welcome to psql 8.1.4, the PostgreSQL interactive terminal.
...

Logging in from the DOS prompt, or a Cygwin terminal has the same result.

If (from the Windows machine) I attempt to login with the postgres user, I
get the following error:
psql: FATAL: no pg_hba.conf entry for host "10.0.0.60", user "postgres",
database "ntag"

So, it is reading the pg_hba.conf file.

As another test, I changed the pg_hba.conf file to require md5
authentication on all (including local) connections, and I restarted the
postmaster. This had no impact on the above tests.

The pgAdmin III tool for Windows correctly honors the pg_hba.conf file.