using EXISTS instead of IN: how?

I have been informed that at present (postgres 7.3.2) using IN is not
advised, and I should  replace it with EXISTS. I can't seem to get it to
work.

I've tried replacing (example):

    SELECT
        name
    FROM
        people
    WHERE
        state IN (
            SELECT
                id
            FROM
                states
            WHERE
                name ~* 'r'
        );

with

    SELECT
        name
    FROM
        people
    WHERE
        exists (
            SELECT
                1
            FROM
                states
            WHERE
                name ~* 'r'
        );

However the second example simply finds all records in people.

Thanks for any help,
Rory

--
Rory Campbell-Lange
<rory@campbell-lange.net>
<www.campbell-lange.net>