initdb initialization problem

Good Morning,

I am having a little problem starting postgres.

I installed PostgreSQL without shared libraries (e.g. --disable-shared).
Once it was installed, I use a modified version of the postgresql.init file
include from the postgresql-7.2.1-2PGDG.src.rpm to start it. (All I changed
was /usr to /usr/local from the postgresql.init.) Database initializes
great, postgres starts like a dream come true. Then if I remove the
PostgreSQL installation except for my $PGDATA dir. Next I install enabling
shared libraries. Once completed, I run the modified postgresql.init. Again
postgres starts quite well. Now I know that it didn't run initdb because I
left the previous one there. I think it was no harm done, because it is the
same version and same configure options (minus the '--disable-shared').
Finally, getting to the error. If I remove both the installation and the
$PGDATA dir. Re-compile a third time, with shared libraries, then I run the
postgresql.init script, I get the following error after a closer inspection.

/*********** Start Error Message ************/
/usr/local/bin/initdb --pgdata=/var/lib/pgsql/data
/usr/local/bin/pg_encoding: error while loading shared libraries:
libpq.so.2: cannot open shared object file: No such file or directory
initdb: pg_encoding failed

Perhaps you did not configure PostgreSQL for multibyte support or
the program was not successfully installed.
/************ End Error Message *************/

I know the multibyte character is there, because template1 was created with
UNICODE. Also, I added /usr/local/lib/pgsql to my /etc/ld.so.conf and ran
ldconfig before trying to start on all instances.

I appreciate any assistance. If you need me to email my configuration output
or configure parameters please let me know.

Thanks for your time and patience.

Warmest Regards,

Dan