Cannot create tabel named 'user'

Roman Solomatin (roman.solomatin@tele2.ee) reports a bug with a severity of 3
The lower the number the more severe it is.

Short Description
Cannot create tabel named 'user'

Long Description
Cannot create a table named user no matter if the database is old or freshly created. It may be version specific,
becauseI have PostgreSQL 6.5.3 and system administrator doesn't update it to 7.x version. 

Sample Code
In psql:
template1=> create database new_database;
CREATEDB
template1=> \c new_database
connecting to new database: new_database
new_database=> create table user ( id int2 not null );
ERROR:  parser: parse error at or near "user"
new_database=> create table users (id int2 not null );
CREATE
new_database=>

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