psqlODBC hangs

I'm having problems getting psqlODBC to work on HP-UX 11.11.
Whenever I try to start my client, it hangs while connecting to the DB.
The client and DB are both running on the same machine.

I've downloaded and installed a precompiled version of Postgresql 7.4.2 from
http://www.software.hp.com/cgi-bin/swdepot_parser.cgi/cgi/displayProductInfo.pl?productNumber=HPUXIEXP1111
without any problems and can use psql to query the DB without problems.

I've built and installed psqlODBC driver ver. 07.03.0200.
The configure line is :

$ ./configure --without-readline --without-zlib --enable-pthreads
--prefix=/ips01/IPS/parlayGW/pgsql CFLAGS=-g +DD64

My .odbc.ini file looks like:
---- start ----
[ODBC Data Sources]
gateway = Causeway Gateway Database

[gateway]
Debug = 1
CommLog = 1
ReadOnly = 0
Servername = 10.10.29.11
Port = 5432
Protocol = 6.4
Database = gateway
Driver = /ips01/IPS/parlayGW/pgsql/lib/libpsqlodbc.sl

[ODBC]
InstallDir = /ips01/IPS/parlayGW/pgsql/lib/libpsqlodbc.sl
---- end ----

The ODBC log output is:
psqlodbc_gwuser21363.log
---- start ----
conn = 411376, PGAPI_Connect(DSN='gateway', UID='gwuser', PWD='xxxxx')
Global Options: Version='07.03.0200', fetch=100, socket=4096,
unknown_sizes=0, max_varchar_size=254, max_longvarchar_size=8190
disable_optimizer=1, ksqo=1, unique_index=1,
use_declarefetch=0
text_as_longvarchar=1, unknowns_as_longvarchar=0,
bools_as_char=1 NAMEDATALEN=64
extra_systable_prefixes='dd_;', conn_settings=''
conn_encoding='OTHER'
conn=411376, query=' '
---- end ----

mylog_gwuser21363.log
---- start ----
[1]CC_connect: entering...
[1]CC_connect(): DSN = 'gateway', server = '10.10.29.11 ', port =
'5432', database = 'gateway', username = 'gwuser', password='xxxxx'
[1]connecting to the server socket...
[1]connection to the server socket succeeded.
[1]sizeof startup packet = 292
[1]sent the authentication block.
[1]sent the authentication block successfully.
[1]gonna do authentication
[1]read 28, global_socket_buffersize=4096
[1]auth got 'R'
[1]areq = 0
[1]auth got 'N'
[1]read 10, global_socket_buffersize=4096
[1]auth got 'K'
[1]auth got 'Z'
[1]sending an empty query...
[1]send_query(): conn=411376, query=' '
---- end ----

Relevant Postgres logging:
---- start ----
2004-09-27 17:38:32 [21364] LOG: 00000: connection received:
host=127.0.0.1 port=60493
LOCATION: BackendFork, postmaster.c:2396
2004-09-27 17:38:32 [21364] LOG: 00000: connection authorized:
user=gwuser database=gateway
LOCATION: BackendFork, postmaster.c:2458
2004-09-27 17:38:32 [21364] DEBUG: 00000:
/ips01/IPS/parlayGW/pgsql/bin/postmaster child[21364]: starting with (
LOCATION: BackendFork, postmaster.c:2555
2004-09-27 17:38:32 [21364] DEBUG: 00000: postgres
LOCATION: BackendFork, postmaster.c:2558
2004-09-27 17:38:32 [21364] DEBUG: 00000: -v131072
LOCATION: BackendFork, postmaster.c:2558
2004-09-27 17:38:32 [21364] DEBUG: 00000: -p
LOCATION: BackendFork, postmaster.c:2558
2004-09-27 17:38:32 [21364] DEBUG: 00000: gateway
LOCATION: BackendFork, postmaster.c:2558
2004-09-27 17:38:32 [21364] DEBUG: 00000: )
LOCATION: BackendFork, postmaster.c:2560
2004-09-27 17:38:32 [21364] DEBUG: 00000: InitPostgres
LOCATION: PostgresMain, postgres.c:2640
2004-09-27 17:38:32 [21306] DEBUG: 00000: forked new backend, pid=21364
socket=8
LOCATION: BackendStartup, postmaster.c:2236
---- end ----

My pg_hba.conf file contains:
---- start ----
local all all trust
# IPv4-style local connections:
host all all 127.0.0.1 255.255.255.255 trust
# IPv6-style local connections:
host all all ::1 ffff:ffff:ffff:ffff:ffff:ffff:ffff:ffff trust
---- end ----

Any help at all would be greatly appreciated.