odbc.ini settings?

I finally got the psqlodbc.so compiled and compiled iodbc
with the option to make /etc/odbc.ini the system default.
I can only get the test program (odbctest) to work when I 
have an ~/.odbc.ini file. If I do not have it present, iodbc
will read the /etc/odbc.ini and show the dsn listed but when
I select it I just get dumped back to "Have a nice day".
Running truss on it and looking at the debug file, it looks
like it is seeing the /etc/odbc.ini file but not using the values
listed for the dsn.

If I copy the /etc/odbc.ini to ~/.odbc.ini it works perfect. 

Does anybody have any idea what I need to do to fix/change this??
I need ideally to have it work with the ODBCINI environment
variable(which at the moment it doesn't either) so I can set
it inside of a run script.

BTW...this is Solaris 2.6 PostgreSQL 6.5 iODBC-2.50.3

TIA,
Daren