Statement Timeout Message Incorrect

Running 8.3RC1

I have an sql script where one or more create index statements
raise a statement timeout message. The statement timeout is
set to 1d.

The script runs in ~3 hours including the timeout messages.

The script does this:

BEGIN;
create table temp.xxx ...
insert into temp.xxx ...
COMMIT;
create index one on temp.xxx(col1);
create index one on temp.xxx(col2);
create index one on temp.xxx(col3);
create index one on temp.xxx(col4);
BEGIN;
drop table public.xxx;
alter table temp.xxx set schema public;
COMMIT;

I have sprinkled the script with show statement_timeout
and it always returns 1D.

I suspect either a problem with counting statement time
or another error is using the statement timeout message.

Ideas?

--elein
elein(at)varlena(dot)com