Trouble connecting

I'm a novice when it comes to PostgreSQL and PostgreSql Admin. I having
truoble connecting to PostgreSQl Server running on the localhost. Every
time I try to connect I get the following response:

¨Error connecting to the server: could not connect to server:
Connection refused
    is server running on 127.0.0.1 and accepting TCP/IP connections on 5432?
¨
The connection information:
Server = localhost
Port = 5432 SSL = <empty>
Initial database: template1
Username = postgres
Trusted = off
Password = <empty>

Futher Information:
PostgreSQL version  = 7.3.4-11
PostgreSQl Admin = 3.1.1.0-cvs200312111
OS = Fedora Core 1 (2.4.22-1.2149)  Arch = athlon

Can anyone help me out here?

Norbert Beckers, Heerlen, NL