postgres 8.3 (Centos 5.1) create tablespace problem

Hello,

I am trying to create a new tablespace using postgres 8.3 (Centos 5.1) and
am getting a permissions problem when trying to do so.

Basically, the directory is owned by postgres and full permissions are
granted.

I am unable to create a tablespace both in pgadmin3 and via psql with the
following:

CREATE TABLESPACE "tablespace" OWNER nic LOCATION '/home/nic/tablespace';

Where the user nic is set-up as a login role and the directory exists.

The postgres user is able to read/write/execute in the specified directory,
so what am i missing here?

Any ideas?

Cheerio,

Nic