error: unterminated dollar-quoted string with 8.2-505.jdbc3.jar?

After digging through the archives and looking at the changelog for
8.2-505 and 8.2-504, it seems that $$ should work, but I'm still
getting errors.

Here's the error message:
Caused by: org.postgresql.util.PSQLException: ERROR: unterminated
dollar-quoted string at or near "$BODY$ BEGIN DELETE FROM ..."

Here's the procedure I'm trying to create (slightly altered for NDA reasons)

CREATE FUNCTION schema.table( del_id INTEGER )
RETURNS BOOLEAN AS
$BODY$
BEGIN
DELETE FROM schema.table
WHERE id = del_id;
RETURN TRUE;
END
$BODY$
LANGUAGE plpgsql;

Any particular reason I shouldn't be able to execute that with the
latest version (8.2-505) of the driver? I had thought $ quotes were
fixed
(from the changelog: )
"Add support for parsing dollar quotes and comments. (jurka) Thanks to
Michael Paesold".

Any help/suggestions appreciated.

Thanks,

Bucky