Problems using Insights ODBC with Microsoft Project

I get this error:

An unexpected error occurred
The database could not be initialized because it is not configured
correctly, it does not support required functionality, or it is not
installed on your computer.
Contact your system administrator for the database

when trying to save my project using the Machine ODBC in Microsoft Project
98. I'm using postgres 6.3 and a PsqlODBC about two weeks old.

The beginning (I hope that's the relevant part) of the psqlodbc.log is
attached below.

conn=31791936, SQLDriverConnect( in)='DSN=PostgreSQL;',
fDriverCompletion=1
DSN info:
DSN='PostgreSQL',server='193.45.212.122',port='5432',dbase='template1',user='pontus',passwd='pontus'

readonly='0',protocol='',showoid='0',fakeoidindex='0',showsystable='0'
          conn_settings=''
          translation_dll='',translation_option=''
conn=31791936,

SQLDriverConnect(out)='DSN=PostgreSQL;DATABASE=template1;SERVER=193.45.212.122;PORT=5432;UID=pontus;PWD=pontus;READONLY=0;PROTOCOL=;FAKEOIDINDEX=0;SHOWOIDCOLUMN=0;ROWVERSIONING=0;SHOWSYSTEMTABLES=0;CONNSETTINGS='
Global Options: fetch=100, socket=4096, unknown_sizes=0,
max_varchar_size=254, max_longvarchar_size=4094
                disable_optimizer=1, unique_index=0, use_declarefetch=1
                text_as_longvarchar=1, unknowns_as_longvarchar=0,
bools_as_char=1
                extra_systable_prefixes='dd_;', conn_settings=''
conn=31791936, query=' '
conn=31791936, query='set DateStyle to 'ISO''
conn=31791936, query='set geqo to 'OFF''
conn=31791936, query='BEGIN'
conn=31791936, query='declare SQL_CUR31850560 cursor for select oid from
pg_type where typname='lo''
conn=31791936, query='fetch 100 in SQL_CUR31850560'
    [ fetched 0 rows ]
conn=31791936, query='close SQL_CUR31850560'
conn=31791936, query='END'
CONN ERROR: func=SQLGetConnectOption, desc='fOption=108', errnum=5,
errmsg='Driver does not support getting this connect option'
            ------------------------------------------------------------
            henv=31786560, conn=31791936, status=1, num_stmts=16
            sock=31786576, stmts=31786624, lobj_type=-999
            ---------------- Socket Info -------------------------------
            socket=400, reverse=0, errornumber=0, errormsg='(null)'
            buffer_in=31798232, buffer_out=31802336
            buffer_filled_in=2, buffer_filled_out=0, buffer_read_in=2
STATEMENT ERROR: func=SQLSetStmtOption, desc='fOption=5, vParam=0',
errnum=10, errmsg='Driver does not support setting this statement option'

------------------------------------------------------------
                 hdbc=31791936, stmt=31916248, result=0
                 manual_result=0, prepare=0, internal=0
                 bindings=0, bindings_allocated=0
                 parameters=0, parameters_allocated=0
                 statement_type=-2, statement='(null)'
                 stmt_with_params=''
                 data_at_exec=-1, current_exec_param=-1, put_data=0
                 currTuple=-1, current_col=-1, lobj_fd=-1
                 maxRows=0, rowset_size=1, keyset_size=0, cursor_type=0,
scroll_concurrency=1
                 cursor_name=''
                 ----------------QResult Info
-------------------------------
CONN ERROR: func=SQLSetStmtOption, desc='fOption=5, vParam=0', errnum=5,
errmsg='Driver does not support getting this connect option'
            ------------------------------------------------------------
            henv=31786560, conn=31791936, status=1, num_stmts=16
            sock=31786576, stmts=31786624, lobj_type=-999
            ---------------- Socket Info -------------------------------
            socket=400, reverse=0, errornumber=0, errormsg='(null)'
            buffer_in=31798232, buffer_out=31802336
            buffer_filled_in=2, buffer_filled_out=0, buffer_read_in=2