Creating Log file - run in background.

H-

I am going through the source version of the postgres install. I have
successfully executed the instructions in the INSTALL file without
errors up to this point.
I don't want postgres to display it's data and processing during every
execution of a sql and as someone mentioned I should put it to a log
file.
I originally did this line.

nohup /usr/local/pgsql/bin/postmaster -D /usr/local/pgsql/data
</dev/null >>server.log 2>>1 &

And it said the same thing as below. So I figure that I'd touch the
server.log file just in case it was looking for it. But as you can see
it did the same error.

[postgres@XXXX src]$ touch /usr/local/pgsql/data/server.log
[postgres@XXXX src]$ nohup /usr/local/pgsql/bin/postmaster -D
/usr/local/pgsql/data </dev/null >>server.log 2>>1 &
[1] 13697
[postgres@XXXX src]$ bash: server.log: Permission denied

[1]+  Exit 1                  nohup /usr/local/pgsql/bin/postmaster -D
/usr/local/pgsql/data </dev/null >>server.log 2>>1
[postgres@XXXX src]$

Here is the params on the file.
-rw-rw-r--    1 postgres postgres        0 Dec 12 19:07
/usr/local/pgsql/data/server.log


What could be the problem? Is there another way to put postgres in the
background and still keep a log file of errors? I saw the -S option but
it didn't provide for a log file.

Also, what is nohup?

Thanks for any assistance anyone could provide.
-Sterling