Auth Error

Hello. I am having a problem connecting to the postmaster via psql or
createdb....
I am logged in as postgres

$ initdb --username=postgres        /* seems to work ok - messages all
positive */
$ nohup postmaster -i > pgserver.log 2>&1 &    /* again - appears ok
returns pid# log file of 0 bytes */

$ createdb  (or psql)
Connection to database 'template1' failed.
No pg_hba.conf entry for host localhost, user postgres, database
template1
createdb: database creation failed on postgres.

the pg_hba.conf file contains the following 2 lines.

local        all                                         trust
host         all         127.0.0.1     255.255.255.255   trust

What went wrong?

TIA

--
Don