BUG #1013: Authentication doesn't work

The following bug has been logged online:

Bug reference:      1013
Logged by:          Keith Hankin
Email address:      keith105@yahoo.com
PostgreSQL version: 7.4
Operating system:   Fedora Linux
Description:        Authentication doesn't work
Details:

When I start up psql, if I am not not logged in as the owner of the database, I get the following error message, even
ifI type the correct password: 

psql: FATAL:  IDENT authentication failed for user "keith"

However, when I start up psql logged in as the owner of the database, I get a proper login regardless of whether I type
theproper password or not.