Permission denied to create database

Sleep deprived and surely doing something stupid here; I can't seem to
confer the ability to create databases on a regular user.  I always get
"permission denied to create database".  One note: template1 has had
some C functions added to it.  Could that be related to the problem?

$ createdb -U joe joejunkdb
createdb: database creation failed: ERROR:  permission denied to create
database

$ sudo -u postgres psql -c "grant all on tablespace pg_default to joe"
Password:
GRANT

$ createdb -U joe joejunkdb
createdb: database creation failed: ERROR:  permission denied to create
database

joe=>  \db+
                                   List of tablespaces
    Name    |  Owner   | Location |           Access
privileges            | Description
------------+----------+----------+----------------------------------------+-------------
 pg_default | postgres |          | {postgres=C/postgres,joe=C/postgres} |
 pg_global  | postgres |
|                                        |

joe=> \l+
                            List of databases
   Name    |  Owner   | Encoding | Tablespace |        Description
-----------+----------+----------+------------+---------------------------
...
template1 | postgres | UTF8     | pg_default | Default template database

For some reason, I haven't succeeded by reading the docs and googling.

Thanks for jarring my memory,
Kevin Murphy
PostgreSQL 8.2.4