PostgreSQL Hibernate Problem

I am new to PostgreSQL and I want to use it from a Java Application with the
Hibernate ORM. I ran into a problem when I created my first simple Hello
Postegres app where I receive a 'relation "X" does not exist' error. It
turns out that the query Hibernate produces seems to be missing some quotes
around the table name as in [select mytable0_.id as col_0_0_ from Mytable
mytable0_]. I can reproduce the exact same error with the PgAdmin query tool
when I apply this query string but I it works once I add the quotes as in
[select mytable0_.id as col_0_0_ from "Mytable" mytable0_].

It seems as if Hibernate is not generating the query string properly despite
that the dialect should be set correctly to
org.hibernate.dialect.PostgreSQLDialect. It could also be that I have not
setup my PostgreSQL db correctly for this to work. If anyone has an idea of
a solution to this problem I would be much obliged. I use PostgreSQL 8.3
with Hibernate Entity Manager 3.4.0 GA.
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