Problems with new DBD

I have just upgraded to the new DBD, but am still using postgresql 7.0.3

I am now getting access errors. I have had to go back into the db and
GRANT ALL on <ALL> to PUBLIC as a work around.

Even though I have specified a userid and password on the DBI->connect,
Pg seems to be using the actual user.

NB: I didn't change any of my code, just upgraded to DBD 0.96, I have
since upgraded to DBI 1.15 but that hasn't helped.

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