new to Unixodbc: can't connect to Postgresql

Hi,
I'm new to postgresql Unix odbc (iodbc). I am trying to test my
unixodbc connection to a local Postgres DB via the provided
"iodbctest" program and have been unsuccessful in getting a "SQL>"
prompt. Instead, it prints out a "Have nice day" message. Been
working on this problem for a week now and have not come up with
anything close at all.
Searched the web and this forum for any "ideas" as to what is wrong
and can't find anything. Any input or help in pointing me to the
right direction is highly appreciated and invaluable.

Thank you in advance for any help on this!

Pasted below is what is currently downloaded and running:
1) Postgres 7.4.3 installed and have created several databases.
2) Downloaded IODBC Driver Manager: 03.51.0002.0224
3) $ODBCINI = /u7/uav/pgsql_odbc/.odbc.ini ;
LD__LIBRARY_PATH=/u7/uav/pgsql/lib:/u7/uav/libiodbc/lib/:/u7/uav/pgsql_odbc/lib:....
4) .odbc.ini file content below

[ODBC Data Sources]
postsql1=PostgreSQL ODBC Drive

[postsql1]
Driver=/u7/uav/pgsql_odbc/lib/psqlodbc.so
Host=localhost
ServerType=Postgres
Database=testdb
Username=dbadm
ReadOnly=no
FetchBufferSize = 60
Port=5432

[ODBC]
Trace=1
TraceFile=/u7/uav/odbc.trace
Debug=1
DebugFile=/u7/uav/odbc.log
------------------------------------

5) odbcinist.ini file content

[PostgresSQL1]
Description=ODBC for PostgreSQL
Driver=/u7/uav/pgsql_odbc/lib/psqlodbc.so

[PostgresSQL]
Description=ODBC for PostgreSQL
Driver=/u7/uav/pgsql_odbc/lib/psqlodbc.so
FileUsage = 1

[ODBC]
Trace = 1
Pooling = No
FileUsage =1
CommLog =1
Debug = 1

6) output :
aloe 92% ./iodbctest
iODBC Demonstration program
This program shows an interactive SQL processor
Driver Manager: 03.51.0002.0224

Enter ODBC connect string (? shows list): ?

DSN | Description
---------------------------------------------------------------
postsql | PostgreSQL
postsql1 | PostgreSQL ODBC Drive

Enter ODBC connect string (? shows list)SN= postsql

Have a nice day.aloe 93%