BUG #1762: Integer multiplication error

The following bug has been logged online:

Bug reference:      1762
Logged by:          Milos Babic
Email address:      milos.babic@gmail.com
PostgreSQL version: 8.0
Operating system:   FreeBSD
Description:        Integer multiplication error
Details:

When I try from psql to select:

select 1024*1024*4500;

it responses with:
error integer out of range

is it known bug or what is going on?

almost, even worst thing happens on postgresql version 7.4.2 on SuSe Linux
9.1
when I try
select 1024*1024*4500;

it responses with
423624704
!!!

it also happens when I try to insert 1024*1024*4500 into int8 field in
database!

Best regards
milos