can not create database!!!!

scott cao (scottc(at)cs(dot)ucla(dot)edu) reports a bug with a severity of 1
The lower the number the more severe it is.

Short Description
can not create database!!!!

Long Description
Can not create database!!!!
I don't have an explicit transaction block in progress.
ERROR: CREATE DATABASE: may not be called in a transaction block
This code work with 6.XX but does't work with 7.xx

Sample Code
#include <stdio.h>
#include <stdlib.h>
#include <string.h>

int main(void)
{
exec sql connect to template1 user postgres;
exec sql create database test1234;
exec sql commit;
}

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