Issues with Redhat 4 Postgresql 8.4 and support of libxml

What are the issues with Redhat 4 in terms of supporting libxml? I build PostgreSQL 8.4 with --with-libxml option but still getting the following error.

STATEMENT: INSERT INTO test VALUES (1, '<foo>abc</foo>');
ERROR: unsupported XML feature
LINE 1: INSERT INTO test VALUES (1, '<foo>abc</foo>');
^
DETAIL: This functionality requires the server to be built with libxml support.
HINT: You need to rebuild PostgreSQL using --with-libxml.

This is what I have done.

1- ./configure --prefix=/net/volks/volks2/pg84 --with-libxml
2- gmake
3- gmake install

This is where I have my libxml2 lib
>ls -l /usr/lib/libxml*.so*
lrwxrwxrwx 1 root root 25 Nov 19 11:08 /usr/lib/libxml2.so -> /usr/local/lib/libxml2.so
lrwxrwxrwx 1 root root 27 Nov 19 11:08 /usr/lib/libxml2.so.2 -> /usr/local/lib/libxml2.so.2
lrwxrwxrwx 1 root root 20 Dec 28 2007 /usr/lib/libxmlparse.so.0 -> libxmlparse.so.0.1.0
-rwxr-xr-x 1 root root 32456 Nov 15 2006 /usr/lib/libxmlparse.so.0.1.0
lrwxrwxrwx 1 root root 18 Dec 28 2007 /usr/lib/libxmltok.so.0 -> libxmltok.so.0.1.0
-rwxr-xr-x 1 root root 75576 Nov 15 2006 /usr/lib/libxmltok.so.0.1.0

> ls -l /usr/local/lib/libxml2.so
lrwxrwxrwx 1 root root 17 Nov 19 10:29 /usr/local/lib/libxml2.so -> libxml2.so.2.6.30
> ls -l /usr/local/lib/libxml2.so.2
lrwxrwxrwx 1 root root 17 Nov 19 10:29 /usr/local/lib/libxml2.so.2 -> libxml2.so.2.6.32

I built libxml2.so (version 2.6.30) from source code.

Thanks for any help.

Ale Raza.