BUG #1674: CREATE TABLE "name" (with double quotes) and resulting behavior

The following bug has been logged online:

Bug reference:      1674
Logged by:          Herman Bos
Email address:      hbos@osso.nl
PostgreSQL version: 7.4.7
Operating system:   Ubuntu Linux 5.04
Description:        CREATE TABLE "name" (with double quotes) and resulting
behavior
Details:

for the create table in question:
http://users.lichtsnel.nl/~spacey/school/vib/vib.sql
entered into the database like this:
psql -d vib -U vib < vib.sql

results on my system
vib=> \d
         List of relations
 Schema |   Name   | Type  | Owner
--------+----------+-------+-------
 public | SANCTIES | table | vib
(1 row)

vib=> select * from SANCTIES;
ERROR:  relation "sancties" does not exist
vib=> \d SANCTIES
Did not find any relation named "SANCTIES".


After realizing that it occurred after putting the tablename between double
qoutes. The same behavior happend with the column names.

vib=> select * from "bedrag";
ERROR:  relation "bedrag" does not exist
vib=> select bedrag from sancties;
ERROR:  column "bedrag" does not exist
vib=> select "bedrag" from sancties;
ERROR:  column "bedrag" does not exist
vib=> select "BEDRAG" from sancties;
 BEDRAG
--------
(0 rows)

I was wondering if this behavior is correct. According to my local
postgresql poweruser its a bug.