Setting up DSPACE for Postgres access

I am currently testing a product by the name of dspace
(http://www.dspace.org) and require installing java since dspace is
completely java based. The problem is that during its installation it
needs to talk to pgsql via jdbc and I am getting the error:
Exception occurred:org.apache.commons.dbcp.DbcpException:
java.sql.SQLException: Driver not found for URL:
jdbc:postgresql://dspace.library.dal.ca:5432/dspace
org.apache.commons.dbcp.DbcpException: java.sql.SQLException: Driver not
found for URL: jdbc:postgresql://dspace.library.dal.ca:5432/dspace

I cannot ofcourse go beyond this since they have to talk to each other and
if that doesnt happen nothing else is going to work. In terms of the
system and the env var's; here goes:

RH Linux 9 (kernel 2.4.20)
j2sdk1.4.2_01
dspace - 1.1.1
postgres - 7.3.4

environment var's:
CLASSPATH=/home/dspace/j2sdk1.4.2_01:/dspace/lib/postgresql.jar:/dspace/lib:/usr/local/pgsql/share/java:/dspace/config:/dspace/lib:/dspace/lib/activation.jar:/dspace/lib/commons-cli.jar:/dspace/lib/commons-collections.jar:/dspace/lib/commons-dbcp.jar:/dspace/lib/commons-pool.jar:/dspace/lib/cos.jar:/dspace/lib/dspace.jar:/dspace/lib/handle.jar:/dspace/lib/jena.jar:/dspace/lib/log4j.jar:/dspace/lib/lucene.jar:/dspace/lib/mail.jar:/dspace/lib/oaicat.jar:/dspace/lib/oro.jar:/dspace/lib/servlet.jar:/dspace/lib/xalan.jar:/dspace/lib/xerces.jar:/home/dspace/j2sdk1.4.2_01/lib:/home/dspace/j2sdk1.4.2_01:/home/dspace/j2sdk1.4.2_01/jre/lib:/home/dspace/j2sdk1.4.2_01/jre/javaws:/home/dspace/dspace-1.1.1-source/build/classes:/usr/local/pgsql/share/java:/usr/local/pgsql/share/java/postgresql.jar
PGDATA=/usr/local/pgsql/data
PGSQL_HOME=/usr/local/pgsql/bin
JAVA_HOME=/home/dspace/j2sdk1.4.2_01
PATH=/usr/kerberos/bin:/usr/local/bin:/bin:/usr/bin:/usr/X11R6/bin:/home/dspace/apache-ant-1.5.4/bin:/usr/local/pgsql/share/java:/usr/local/pgsql/bin:/home/dspace/j2sdk1.4.2_01:/home/dspace/j2sdk1.4.2_01/bin:/home/dspace/bin
JAVA_OPTS=-Xmx512M -Xms64M -Dfile.encoding=UTF-8

I do realise that support from the developers from DSPACE should be
available but it has not been so far. As long as I get JDBC to work with
PGSQL, it would at the very least get me started.

Any help would be greatly appreciated.

Thanks.