phpPgAdmin 2.4.2

Installed postgreql 7.3.3 and phpPgAdmin 2.4.2 in different machines. Defined password for postgres superuser. Entry is created in the pg_shadow table for the same user. Keeping the access method in pg_hba.conf file as "trust", I do not have any problem. However when changed the access method to "password" and tried managing the database using the phpPgAdmin tool I get

Error - /var/www/pgadmin.intranet/htdocs/lib.inc.php -- Line: 303
PostgreSQL said:
Your query:
Unable to connect with settings: host=host_name' port='post_num' dbname='template1' user='user_id' password='xxxxx'

The pg_hpa.conf file has an entry
"host all all ip_address ip_mask password"

Any idea why this is happening.

Regards,
Salah