UpGrading to 7.1.2

Hello all,

So I saw to fix a memory error I should upgrade to 7.1.x.
After downloading 7.1.2 I went to back up my database file per
http://www.ca.postgresql.org/users-lounge/docs/7.1/admin/install-upgrading.html

and well I get
pg_dumpall -v > database.bkup
Connection to database 'galaxy' failed.
FATAL 1:  Database path could not be resolved.

pg_dump failed on galaxy, exiting

Okay here is the problem this database no longer exist  At some point the
dir path for it got removed and I do not know when or why I did that with
out dropdb.  So postgres is still thinking it should be there.

How do I get postgres to stop thinking it is there I now can not do a
dropdb if I do I get

ERROR:  The database path '(null)' is invalid. This may be due to a
character that is not allowed or because the chosen path isn't p
ermitted for databases
dropdb: database removal failed

Which it should do.

Please HELP