banner vs version

[postgres@prdpwgb0208 local]$ psql template1
Welcome to psql 8.0.0beta2, the PostgreSQL interactive terminal.

Type:  \copyright for distribution terms      \h for help with SQL commands      \? for help with psql commands      \g
orterminate with semicolon to execute query      \q to quit
 

template1=# select version();                          version
-------------------------------------------------------------PostgreSQL 7.4.2 on i686-pc-linux-gnu, compiled by GCC
2.96
(1 row)

template1=#


Is this ok? Banner version, 8 beta2, version() returns 7.4.2.

Regards