about password authentication

hi.

I compiled postgresql 6.5.3 with enable-hba.

I was created all database table succesfully.
create users, and update pg_shadow table with new password
successfully.

and I edit data/pg_hba.conf file like this

local        all                                         password
host         all         127.0.0.1     255.255.255.255   password

but when i tried to connect database using psql,

%psql -u
Username: godslord
Password:

Connection to database 'godslord' failed.
Password authentication failed for user 'godslord'
%

I used password in pg_shadow. what's wrong?
(I update password column of pg_shadow table with
clear text password. like

update pg_shadow set password='PASSWORD'
where usename='userid';)