Getting Started

Hi all!
I am having troubles getting started with a database, I have pgsql installed,
but can not seem to connect.
I am running Linux Mandrake 7.2
here is what I get from the command line:

[fred@localhost fred]$ psql
psql: FATAL 1:  Database "fred" does not exist in the system catalog.

if I use the GUI program PostgreSQL Access, and try to create a new database,
I get the error message "Tcl error executing pg_exec create database first is
not valid postgresql connection"
where I was trying to create a database named "first"
What setting have I overlooked?
Sorry if this is a FAQ, but I have looked over the docs, but have not found
anything as of yet.
TIA,
Fred