BUG #2524: Error while using pg_restore command

The following bug has been logged online:

Bug reference: 2524
Logged by: Sudarshan
Email address: sudharshan(dot)prabhu(at)valtech(dot)co(dot)in
PostgreSQL version: 8.0
Operating system: Windoes-XP
Description: Error while using pg_restore command
Details:

When i run the pg_restore command

"pg_restore -d db1 -v -h localhost -p 5432 -U postgres db2.backup"

I get the following error

pg_restore: [archiver (db)] connection to database "db1" failed: FATAL:
password authentication failed for user "postgres"

I checked and rechecked the password and it seems correct. I also saw so
many threads on "pg_restore" but could not find suitable answer for this.

Ealiest help greatly appreciated.

Cheers
Sudarshan