BUG #1529: Psql doesnt ask for passowrd

The following bug has been logged online:

Bug reference:      1529
Logged by:          Daniel Wilches
Email address:      dwilches@univalle.edu.co
PostgreSQL version: 8.0.1
Operating system:   Windows XP
Description:        Psql doesnt ask for passowrd
Details:

Hi,
When I just installed Postgres everything went OK,
when using:
psql -U postgres template1
I was prompted for password. But from one day,
psql diodnt ask for password anymore (and for noone user) even with the -W
flag. It just reject the conection.

I checked pg_hba and postgres is doing MD5 auth. When i turn this to TRUST,
then logins are allowed, but if again  I turn this to MD5 or password, then
reject the connection without asking for password.

For the moment Im using TRUSTed "authentication" cause
I need to login, but this is no good idea :S

Thanx, please tell me if its a bug or a
"replace-human-please-error" :)

Bye, Daniel