upgrading postgresql from 7.2 to 7.3, getting error

Hi, as my title states I'm trying to upgrade from 7.2 to 7.3 on redhat
linux 9.  I've been following the documentation instructions on the
website but ran into problems.  I searched on google but could not find
my answer.  On postgresql as user postgres I ran the command pg_dumpall
 > sroom1 and then after installing 7.3 I ran psql template1 < sroom1
but when I run that after a bunch of grants, revokes, etc, it prints the
error:

\connect: FATAL 1: IDENT authentication failed for user "jtate"

I tried playing around with my pg_hba.conf file to have it "local all
all ident sameuser" right now, i've tried other variations such as
taking out sameuser, one of the alls, pam , i have identd running on the
server as well and hosts.allow setup properly for identd.  The user
jtate does exist on the computer (normal unix password account).  any
suggestions, thanks?