How do I create a database if I can't connect to it?

Hello,

For a short description, I'll just show the sequence of commands I'm trying to execute:

paolo@box> initdb -D /usr/local/pgsql/data/
paolo@box> postgres -D /usr/local/pgsql/data -i -p 5435
paolo@box> createdb foo -p 5435
createdb: could not connect to database foo: FATAL:  database "foo" does not exist

And

"postgres -D /usr/local/pgsql/data -i -p 5435"'s output:

/*
LOG:  database system was shut down at 2007-07-27 11:25:27 BRT
LOG:  checkpoint record is at 0/42C4B4
LOG:  redo record is at 0/42C4B4; undo record is at 0/0; shutdown TRUE
LOG:  next transaction ID: 0/593; next OID: 10820
LOG:  next MultiXactId: 1; next MultiXactOffset: 0
LOG:  database system is ready
FATAL:  database "foo" does not exist
*/

Now, am I doing something terribly wrong/noobish, or Postgres is freaking out because I want to create a database that does not exist?

Thanks in advance,
~Paolo